Thinking about making a property investment? For many investors, the UK remains the best place to invest in, Buy-to-Let property and a clear opportunity to build long-term returns. Here’s a few reasons why you should invest in UK property.
UK Undersupply Drives Demand
The major driver in the UK rental market right now is residential undersupply. While this could be considered a challenge for renters, for people looking to invest in UK property, it represents a prime opportunity to build solid returns and find incredible value.
This is particularly true in the UK’s regional cores, where the market is incredibly competitive but still affordable.
With UK Buy-to-Let worth over £1 trillion, research estimates that UK renters will outnumber homeowners by 2039 – driven by rapidly increasing house prices and a growing popularity for the flexibility that renting provides. For context, 3 years ago, around 5m households, or 21% of the total, were in private rented accommodation, a quarter of whom are families with children. This is set to rise to 5.79m (or 24%) over the next two years, alongside 14.3 million owner occupiers and 4.3 million social tenants, According to an annual report from estate agency Knight Frank. Who commissioned a YouGov survey of more than 10,000 tenants and spoke to 26 major investors.
The report says that at least three-quarters of UK renters are living in homes owned by private landlords,
Not surprisingly, 68% of renters still expect to be living in rented accommodation in three years’ time.
The most common reason for renting was saving for a deposit to buy a property, cited by 30%; followed by 21% who said renting allowed them to live in an area where they could not afford to buy; and 18% who said renting was more affordable than paying a mortgage.
By the end of 2021 nearly one in four UK households will be privately renting.
For more information or to discuss Holborn's Property offerings, please contact me. I will be happy to help with whatever questions you may have. Rob.
E: robert.gourlay@holbornassets.com T: (+6) 01151565649 W: www.rgwealthsolutions.com
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