UK buy-to-let market hits record high

UK buy-to-let market hits record high

The UK buy-to-let market performance of recent times isn’t surprising considering that the number of buy-to-let properties continues to massively increase in volume. In fact, it’s been widely expected that private renters will become a huge majority in the property market by the middle of the century, a feat that is coming around much quicker than many expected it to do so.

With the UK facing one of the worst cost-of-living crises in living memory, people’s ability to save disposable income towards a house deposit is becoming more and more difficult with every passing week. Despite the chancellor’s announcement this week that he’ll be increasing the national insurance threshold and cutting fuel duty, most are struggling with one of the biggest and fastest increase in bills since the 1950’s.

All this leads us to believe that the increase in pace of the UK buy-to-let market is not artificial and it will continue to accelerate for the foreseeable future.
New research reported by Property Investor News highlights this huge jump in the number of rental properties in the UK.

UK buy-to-let hits new record

As reported, ‘The study by Octane Capital puts the UK in fourth position in the world in terms of the size of its rental market. UK buy-to-let only falls behind the US, Germany and Japan in terms of the number of rented homes it contains. This is based on Octane’s estimations that there are currently more than 29.5m homes in the UK. Its research looked at number of dwellings, proportion attributed as private rentals and how this then equates to the total number of rental homes. The US has around 139.7m dwellings, says Octane, and 47m of these are in the private rented sector, (34% compared to 30% in the UK). Germany has around 20m privately rented properties, while Japan has an estimated 8.7m. ‘

It goes on to say that much like the US, Germany and Japan, the UK is seeing attitudes change rapidly towards home ownership and renting for life. There’s a slight difference in the UK market in that home ownership has long been considered important and a right, whereas in the other markets that desire for home ownership has not necessarily been prevalent.

All this means that it’s a great investment environment for those either with existing buy-to-let portfolios or those interested in starting one.

Buy-to-let property investment

Yields, property values and average rents have all been increasing, and in an uncertain economic environment the stability and profitability that property ownership gives can feel priceless.

With inflation running as high as it is there are very few assets, if any, that are currently keeping pace or outperforming inflation, meaning property is broadly able to keep or increase its value in a time when most other assets are falling, making it extremely attractive.

If you’re looking to either start or expand your buy-to-let portfolio, why not take a look through our current investment opportunities and get in touch with us today?

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