According to a new report from Countrywide, the UK’s private rented sector has seen a significant rise in stock over the last decade. Since 2005, around three million homes have come into the private rented sector, half of which used to be owner-occupied but have now changed hands and gone into the rental market. The other half is made up of new build units that landlords have invested in.
Over the last couple of years there has been a surge in off-plan investments as investors take advantage of the significant yields that can be gained, particularly in areas such as student property. Buying off-plan allows investors to purchase units in large property developments which are then looked after by a property management company to manage tenancies, maintenance, repairs etc. Many of these investments also offer owners a guaranteed return for the first few years which helps build confidence in the overall investment.
The report predicts further growth of new build developments over the next few years that are purely aimed at renters and that more owner-occupied homes will come on to the market and be picked up by landlords.
The landscape of the UK housing market is going though considerable changes at the moment as more people turn away from the traditional aspirations of home ownership to the freedom that renting can give you. If you are thinking of becoming a landlord for the first time and are interested in taking those first steps into the property investment market then please contact us now. We can help you find the right opportunities.