22 Oct Buy to Let Investments
We’re not going to lie. The Private Rental Sector is pretty exciting right now.
Since the creation of a Buy to Let investment as a specific mortgage product in 1996, house prices, fuelled by a shortage of stock and a rapidly growing population have rocketed.
As cranes blot out the London skyline in a construction boom fuelled by access to low interest rate loans, much of this building work has been tailored to a demand for the rapid expansion in the Buy to Let market.
This isn’t merely conjecture.
Here’s some cold, hard numbers for you, from a recent report released by Paragon.
The Private Rental Sector
The number of properties in the Private Rental Sector was 2.4 million in 1996.
Today, as the Buy to Let mortgage finally comes of age, that number has reached 4.9 million.
That number is set to increase by a further 1 MILLION properties over the next 5 years.
At this point you might well be worried that we’re asking you to leave your job and plunge headlong into a sector of which you may have little experience. Fear not, dear friend.
We’re simply highlighting an opportunity for you in a market that is likely to grow.
There are around 2 million private landlords currently living in the United Kingdom and that number is set to grow as well.
Of those 2 million landlords, 8% are landlords on a full time basis.
The remaining 92% are hard working professionals, people like you, who view their Buy To Let investment portfolio as a way to supplement their income.
The future for the Buy to Let Investment Market
The UK private rental sector is blossoming, with 18% of current housing stock now used in this manner, and has now overtaken social housing as the second most popular form of housing tenure after owner occupancy.
With property values set to return to steady, sustained growth, the value of your investment asset is likely to trickle upwards. And if you’re worried that you won’t be able fill a future Buy to Let investment property, it’s probably reassuring to know that most letting agents are predicting a significant excess demand for rental accommodation.
The Buy to Let investment as a specific product may still me a relatively new package, but with a whopping 700 mortgage products on the market at present, it’s clear that there is huge potential for growth.