Figures from ONS have shown that house prices in the UK have increased by £31,000 in the past year (2021).
Average rental prices are forecasted to increase by 12% from 2020 to 2024.
It is estimated that the number of renters in the UK will surpass the number of homeowners by 2039.
Interest rates on many buy-to-let mortgages are at a record low, with many lenders providing loans that cover up to 80% of the cost.
Property has a high tangible asset value and has continually proven to be one of the most lucrative investment markets in the UK. Consequently, this area of investment is applauded as one of the best sources of passive income, which is why the demand for properties rises year on year.
One of the main reasons that the property market continues to thrive is due to the constant population growth that correlates with a high demand for housing. It is forecasted that, by 2023, 20% of the population will be living in rented housing. Therefore, there has never been a more opportune time to start investing in property.
Benefits – Income generation, retirement plan, and a more stable investment.
Considerations – Location, average rents, population, level of demand, potential for capital growth and career opportunities in the area.
Risks – Market fluctuation, rent arrears and property damage.
Image by David McBee