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Good Times Ahead For Buy To Let Investors in 2015

If you are thinking about investing in property in 2015, it’s not just us who think it’s a great idea.

According to analysis from Savills, buy-to-let property has increased by an incredible 17% over the past 12 months, as more households have turned to the affordable rental market. The rental demand is set to continue to rise, with 1.1 million renters expected to join the market over the next five years.

The buy-to-let market is set to increase further in 2015, as thousands of pension savers move over to buy-to-let when they become eligible to spend their pension pots as they wish from April this year.

The number of rented properties has increased by 1.2 million since 2009 and now stands at 5.4 million. The main reason for the level of growth in this market has much to do with affordability for first-time buyers.

Rents To Rise In 2015

Also, latest figures from the Association of Residential Letting Agents have found that one in four letting agents in the UK have seen private sector rents rise at the beginning of 2015.

David Cox, managing director of ARLA stated “With house prices still high, along with stricter lending criteria for mortgages, the rental market is currently a much more accessible and affordable option to buying. Due to this, the demand for rental property is increasing, which impacts the cost of renting and people are willing to pay more to secure their desired property. If house prices continue to rise in 2015, we expect this trend to continue in the rental sector.”

Buy To Let Landlords Break £1 Trillion Barrier

The value of property owned by landlords in Great Britain is set to break the £1 trillion pound barrier next year, according to new research from Kent Alliance. The report shows that the total value of property in the private rented sector has now reached £930.7 billion, climbing by £109.5 billion in the last year alone, a rise of 13.3%.

Why Buy To Let Property?

The UK residential property is the largest asset class in the country, and according to the Office for National Statistics (ONS), it was estimated to be worth over £5 trillion in 2013, and has seen steady returns that have averaged at 14% since the 1970s. Property is a tangible asset class over which you can have full control from the outset. As an investor, you are also able to choose your property by its type, size, specification and location.

Rental demand has never been higher in the UK. Extremely large deposits are required to get on to the property ladder, resulting in an ever-increasing number of renters. The Index of Private Housing Rental Prices (IPHRP) as published by ONS in September 2014, shows a clear upward trajectory in the price of renting residential property from private landlords.

In 2014, Despite the Government measures to boost home ownership (such as the Help To Buy scheme) the private rented sector, as an UK average, resulted in higher total returns in the year to the second quarter of 2014, according to Knight Frank.

Before purchasing a property and getting on to the property ladder, it is vital for you to make an informed decision. You will need to have a clear understanding of your motivation for investing and your current financial situation.

Goal: what would you like to achieve?

You will need to decide whether you are looking for something that will provide you with a long-term income or a property that you will purchase for capital growth to potentially lead to an early retirement.

Strategy: Once you have set your goals, you will need to carefully select a strategy to match these. Just because something has worked for someone else, doesn’t mean it will be right for you.

Location, Location, Location

The location of a buy-to-let property is extremely important, as it is directly linked with the process of finding a tenant. Many landlords like the idea of owning close to home, although this might not always result in the most profitable option.

Want More Information?

For more information about the latest property investment deals from Mayweather Estates, be sure to register your interest here today. Alternatively feel free to contact one of our investment specialists on 0161 212 7414. Or visit our website today www.mayweatherestates.com