Historically property investors bought properties to do them up, sell them on and reap the capital gains. This type of investment approach will always be popular but what will be far more lucrative in the future is buying properties specifically for rental yields rather than a quick turnaround and a sale.
According to new information from the Royal Institute of Chartered Surveyors (RICS) the price of renting a property will rise faster than house prices by the end of the decade. They forecast that the price of renting will rise by 25% by the end of 2020 which is faster than the average house price.
Over the next few years RICS forecast that house prices will be growing around 4.7% year on year which will be lower than the rate of growth for rent. With many people increasingly priced out of home ownership and the general shift we are seeing in mindset, especially amongst younger people, towards renting rather than buying, the opportunity exists for investors to purchase properties for pure rental rather than the income gains on offer.
For more information about the buy-to-let market and how best to take advantage of this growing trend, please contact us now.