By Andrew Batt:
British property buyers and investors are splashing cash for new-build, buy-to-let properties as a way to expand their current investment portfolios.
According to Martin Copeland, Sales Sirector at Knight Knox International, the traditional buy-to-let market in regional towns and cities is beginning to show strong signs of recovery. High rental demand coupled with a lack of existing, affordable stock has led to a wave of new construction projects in popular locations like Manchester and Sheffield, signalling a confidence that has been lacking of late in this once traditional sector.
Rental demand in the UK is the highest it’s ever been, as first-time buyers are increasingly priced out of the market due to the continued hike in house prices and the lack of affordable mortgages available. Faced with the prospect of having to fork out thousands of pounds for a deposit, potential buyers are increasingly forced to look to the burgeoning rental market as the only way to gain some measure of independence.
So what does this mean for portfolio landlords and private investors?
In their recent residential report, property expert Jones Lang LaSalle predicts that there will be a 3 percent rise in rental growth pa in 2013; strengthening the position of high tenant demand versus current available stock.
The North West on England in particular is showing positive signs of recovery, with demand for residential buy-to-let properties in the region continuing to soar, due to the high ratio of tenants in comparison to the number of properties available.
Copeland added that, having built up a strong clientèle of investors over the years, his company is certainly experiencing a far higher rate of enquiries for new-build stock than ever before and there is a palpable excitement about the prospect of investing in new-build developments, as the current buy-to-let stock in the market is over six years old in some areas, requiring a higher level of maintenance and refurbishment to raise it to the acceptable minimum standard expected by tenants.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
Get daily property news in Thai and English straight to your Inbox from Thailand’s number one property website. Subscribe today for free.