Buy-to-let property investments appreciated 17% over the year
Property investments bought with the UK’s growing rental sector in mind proved to be very fruitful during 2014.
Although capital appreciation is perhaps secondary to the long-term income provided by rental yields, property investors have seen their assets grow in value by an incredible 17% over 2014 and by more than £180 billion over the past five years, according to research by Savills.
This is in part due to the wider grow of the UK’s housing market over the period but also because investors are starting to realise the country’s private rented sector shows no sign of slowing down.
The reason many investors want to secure buy-to-let property investments is that demand for rental properties is soaring. There are two reasons why this is happening. Firstly, many would-be first-time buyers are unable to meet mortgage requirements, but also the millennial generation is more likely to choose rental accommodation over purchasing than any other past generation.
As such Savills highlights the total number of private rented homes has increased by almost 1.2 million since 2009, with the current total somewhere around the 5.4 million mark, compared to 4.7 million in the social rented sector. Homes owned via the aid of a mortgage have fallen by almost 800,000 over the past five years, reflecting the two trends highlighted above.
It is an old adage in the UK that you can’t go wrong with bricks and mortar and while that’s broadly true, bricks and mortar that appeal to Britain’s growing core of renters will most likely be the best investment over the coming years.
Source: www.selectproperty.com
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