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UK buy-to-let sales increase by 50% nationally
October 14, 2015Article by Charlotte Ashton
To say that the UK’s buy-to-let sector is booming is a massive understatement. For years, increasing numbers of investors have been drawn to buy-to-let property investment due to the potential for both capital growth and healthy yields. Far from reaching saturation point, the market has continued to expand, with investors from across the globe wanting a piece of the action in the UK.
Now, figures reported by Equifax Touchstone have shown a rise of more than 50% in UK buy-to-let sales in August 2015, when compared with the same month a year before. The company’s Iain Hill comments,
“We have seen promising signs of growth in the buy-to-let lending market in the past year as demand continues to rise and this has been further consolidated by last month’s figures. We expect this upward trend to continue in the coming months.”
The buy-to-let lending market has certainly expanded to suit investors’ increasing appetite for this asset class. According to the Mortgages for Business Complex Buy to Let Index the number of buy-to-let mortgage products has shot up, with almost 1,000 available during Q3 2015.
Ray Withers, CEO of specialist property investment company Property Frontiers, comments,
“From every angle the UK buy-to-let market is thriving. The rapid growth of the private rented sector and the chronic undersupply of new homes continues to fuel demand. As renting becomes the norm for families well into their 30s (if not beyond), tenants are becoming increasingly content to spend a greater proportion of their income on rent in order to get the type of home that they want – often a larger and better located property than they would be able to afford if they bought.”
According to figures recently reported by the Guardian, rent eats up 34% of the average household’s income. For first time buyers, the annual cost of their mortgage accounts for just 18% of income. Yet the need for large deposits is keeping many who could afford to buy locked firmly in the private rented sector – with no avenue of escape in sight.
With so many professionals renting in the UK’s cities, buy-to-let interest is naturally focused on high spec homes in superb locations. In Salford Quays, the 60 apartment Custom Quay development is precisely what investors are looking for. Available from £127,000, the one and two bedroom duplex apartments offer bright, contemporary living spaces with exceptional waterfront views and an extensive communal roof terrace. The bright lights of Manchester city centre are less than 15 minutes away by tram.
As the UK’s buy-to-let sector continues to experience such high demand, superb developments such as Custom Quay are selling out fast. Already the development has limited units remaining as the potential for capital growth and an expected 8.4% yield offer investors precisely the returns that they are looking for.
For more information about leading buy-to-let opportunities in the UK and overseas, contact Property Frontiers or call +44 1865 202 700.