UK Rental Market:

Growth in Buy To Let in the UK:

The UK rental market has grown significantly since the introduction of Assured Short hold Tenancies and the introduction of Buy to Let mortgages in 1996.

Please click here to open a recent article on tenant demand from the BBC

Between 1995 and 2003 the number of people needing temporary accommodation doubled from 46,000 to over 93,000 according to the Barker report.

This trend has continued with demand for the right type of rental properties in the correct areas remaining strong. Another effect of continuing price growth has been the increased difficulties first time buyers have in buying property. This has fuelled rental demand as more of the population need to rent for longer before being able to purchase.

The trend in the UK is also for shorter working contracts, meaning that people move more often for work and as they aren’t permanently in one place they will often rent.

Increased levels of personal spending have also created a situation where people save less and so don’t have deposit monies available to fund a mortgage.

The UK is one of the few positively geared Buy To Let markets. This is to say that in certain areas with specific property types mortgage and running costs can usually be met by rental income. Although this is becoming more difficult with the recent rise in interest rates, rental income for property under £125,000 in the Peterborough area generally covers costs, or thereabouts.

Rents in the UK on average have doubled every 9 to 12 years through history.

The UK also has one of the most competitive Buy To Let mortgage markets in the world meaning that interest rates are low and lending environments efficient.

The system ensures that borrowers are approved electronically at high speed and offers are issued quickly.

All great news for focused UK investment!

For more specific information about property location click here