2012 'to be the year of the property investor'
Posted by Lucy Wooldridge
This year is set to see rush of investors looking to snap up buy-to-let properties, it has been predicted.
According to homebuilder Miller Homes, 2012 will be the "year of the investor", with landlords looking to expand their portfolios or enter the private rented business for the first time a main driver of this, easier.com reports.
Steve McElroy, sales director for Miller Homes North East, noted that recent data suggests rents across England and Wales are at an all-time high, which is tempting more people to make UK property investment.
"Demand for quality rental properties is continuing to soar and anecdotal evidence suggests there is fierce competition among tenants to secure a home," he said.
"We have begun to see a marked increase in the number of landlords who are looking to capitalise on the current situation, and we expect this upward trend to continue throughout 2012."
Mr McElroy cited a recent report from buy-to-let mortgage provider Paragon which revealed that more than 22 per cent of landlords expect to buy additional properties this year, while just eight per cent are considering reducing their stock.
And a combination of economic factors is likely to mean that the current high tenant demand for rented property will continue for the foreseeable future.
For example, many non-homeowners believe that a lack of access to lending is still making it impossible for them to get on the housing ladder, and so are renting instead.
"Taking the economic situation into consideration and the fact that the UK is experiencing the worst housing shortage since the Second World War, conditions are looking favourable for savvy investors. Low returns on savings and record low interest rates also make property look like an increasingly attractive investment proposition," added Mr McElroy.
Earlier this week, property search service Sourcing Property noted a significant rise in the number of Australian investors looking to buy rental properties in the UK, particularly London, thanks to a good exchange rate and excellent returns.
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