Buy-to-let offers a stable investment amidst the current uncertainty

Callum Ward, 20 March 2020

COVID-19, more commonly known has Coronavirus, has sent the world into a frenzy in the last few weeks. Originating in China, the disease has spread to countries all around the world. Schools are closing, people are being advised to work from home, pubs and restaurants are being forced to close and some of the worlds most lucrative markets have completely plummeted.

​On one day last week Wall Street was down by 10%, a pan-Europe index was down by 12.5% and in Madrid the fall was 14%. In the UK, the main London index had two of its biggest one-day falls in the same week, dropping by 11% on Thursday 12 March.

The world seems to have come to a complete stand still. Brexit talks have been postponed, sporting events all around the world have been cancelled as well as large public gatherings such as exhibitions and festivals, but one area that continues to stay strong is the property market.

The UK property market especially has remained steady throughout the pandemonium. There is evidence coming in via mortgage application and house sale data that investors are jumping on the chance to invest in such a stable market.

Buy-to-let investment in particular has been increasingly popular amongst property investors. The buy-to-let market was one of the most consistent markets throughout the previous Brexit and General Election uncertainty and it looks like it is set to once again offer a save haven for investors from all over the world.

The fall in the value of the pound over the past few days as a result of the coronavirus pandemic has made overseas investment in property even more tantalising, and international property investors are expected to increase in numbers in the coming months. The introduction of the 2% stamp duty surcharge in just over a years’ time is also propelling investors to act quickly before it is introduced.

So, what next? It’s hard to put a timescale on when normality will return, not just to the markets around the world, but to day-to-day life in general. The World Health Organisation have continuously stated that procedures are being put in place to tackle the ever-growing spread of coronavirus, and in China the spread seems to be finally slowing down.

Nobel prize winner and American-British-Israeli biophysicist, Michael Levitt has stated that COVID-19 has drastically slowed down in the country of origin and will not pose a threat to the majority of people living there. The country even reported, for the second day in a row, that there have been no new domestic cases. It seems as though there is light at the end of the tunnel, and whilst it still may be a few months off, there is hope.

Stock markets will inevitably rise again once again, but for now property remains the best and most reliable investment option on the market. Despite the current adversity the world is facing, the UK buy-to-let market is expected to build on its extremely promising start to 2020 and continue to be a lucrative investment choice.

We’re still operating as normal here at yieldit. Whilst the current situation is causing a lot of uncertainty throughout the country, we believe it’s creating an excellent opportunity for investors. Get in touch if you would like to find out about some of our best investment opportunities here!


Buy-to-let offers a stable investment amidst the current uncertainty

Callum Ward, 20 March 2020

COVID-19, more commonly known has Coronavirus, has sent the world into a frenzy in the last few weeks. Originating in China, the disease has spread to countries all around the world. Schools are closing, people are being advised to work from home, pubs and restaurants are being forced to close and some of the worlds most lucrative markets have completely plummeted.

​On one day last week Wall Street was down by 10%, a pan-Europe index was down by 12.5% and in Madrid the fall was 14%. In the UK, the main London index had two of its biggest one-day falls in the same week, dropping by 11% on Thursday 12 March.

The world seems to have come to a complete stand still. Brexit talks have been postponed, sporting events all around the world have been cancelled as well as large public gatherings such as exhibitions and festivals, but one area that continues to stay strong is the property market.

The UK property market especially has remained steady throughout the pandemonium. There is evidence coming in via mortgage application and house sale data that investors are jumping on the chance to invest in such a stable market.

Buy-to-let investment in particular has been increasingly popular amongst property investors. The buy-to-let market was one of the most consistent markets throughout the previous Brexit and General Election uncertainty and it looks like it is set to once again offer a save haven for investors from all over the world.

The fall in the value of the pound over the past few days as a result of the coronavirus pandemic has made overseas investment in property even more tantalising, and international property investors are expected to increase in numbers in the coming months. The introduction of the 2% stamp duty surcharge in just over a years’ time is also propelling investors to act quickly before it is introduced.

So, what next? It’s hard to put a timescale on when normality will return, not just to the markets around the world, but to day-to-day life in general. The World Health Organisation have continuously stated that procedures are being put in place to tackle the ever-growing spread of coronavirus, and in China the spread seems to be finally slowing down.

Nobel prize winner and American-British-Israeli biophysicist, Michael Levitt has stated that COVID-19 has drastically slowed down in the country of origin and will not pose a threat to the majority of people living there. The country even reported, for the second day in a row, that there have been no new domestic cases. It seems as though there is light at the end of the tunnel, and whilst it still may be a few months off, there is hope.

Stock markets will inevitably rise again once again, but for now property remains the best and most reliable investment option on the market. Despite the current adversity the world is facing, the UK buy-to-let market is expected to build on its extremely promising start to 2020 and continue to be a lucrative investment choice.

We’re still operating as normal here at yieldit. Whilst the current situation is causing a lot of uncertainty throughout the country, we believe it’s creating an excellent opportunity for investors. Get in touch if you would like to find out about some of our best investment opportunities here!