Find out what’s happening in the property investment arena both in the UK and internationally
Property investors plan to take the UK by storm in 2015
December 29, 2014Article by Charlotte Ashton
An astonishing 85% of UK property investors are planning to expand their property portfolios in the next five years, according to a survey from The Property Hub. The impressive figures speaks volumes about the confidence that is surging through the UK buy-to-let investment market, as Ray Withers, Chief Executive of Property Frontiers, one of the UK’s leading specialists in buy-to-let properties, explains,
“We’re seeing more and more property investors turning to the UK to make their money. UK buy-to-let property was one of the investment highlights of 2014 and it looks set to be even stronger in 2015. This asset class is perfect for investors with varying sums of capital, thanks to the range of properties and locations available. It means that buy-to-let investment properties have attracted everyone from investors with just that one property in their portfolio to large-scale buyers with an array of homes.”
The Property Hub October 2014 survey helps to show why buy-to-let has become so popular in the UK. The average investor, who has 4.8 properties to his/her name, makes a profit of £17,434 per year, according to the figures. It’s not quite a lottery win, but it’s more than many people take home for working a fulltime job all year.
“Being a property investor and choosing the right buy-to-let homes can lead to solid rewards,” continues Withers. “Yields of 5% or 6% are easily achievable with the right kind of property in the right area.”
The key to selecting the right property is to think about its target tenants. Young professionals working in the UK’s cities but not earning enough to save for a deposit are the perfect audience. They want to rent high spec, well located apartments within walking distance of the city centre and local amenities. Studios and one bedroom apartments are particularly popular, with some two bedroom apartments also making great investment opportunities.
Property Frontiers, for example, offers modern apartments in the heart of Oxford for investment from £187,500 with only a 10% deposit required and yield of up to 5.14%. The prime location and contemporary design, full of light and space, are the perfect draw for attracting young professionals who are apt to make good, long-term, responsible tenants.
In Liverpool, the Parker Street apartments offer a 6% net yield assured for five years. The mixture of studios and one bedroom apartments are precisely what the city’s newest generation of professionals are looking for and their unrivalled L1 location in the heart of the city centre guarantees that void times will be minimal.
With such a successful 2014 under their belts, property investors are now collectively drawing breath before plunging back into the UK buy-to-let market for an even more exciting 2015.