Why Buy to Let?

The buy-to-let opportunity in the UK has exploded in less than a decade. This is evidenced by a flurry of recent TV programmes showing hundreds of ordinary people who are creating extraordinary wealth for themselves.

Rental demand will nearly double inside 10 years

Only eight years ago there were no buy-to-let mortgages. You had to be a very skilled yield manager with the letting laws and regulations putting off all but the bravest landlords. According to the Halifax there are now over 400,000 buy-to-let mortgages with a staggering 48% increase in just the last 12 months, so what is going on?.

The Rental Boom

Unlike other European countries, our population is expanding significantly, predicted to reach 62.7 million by 2016 compared to 58.8 million in 1996.

Also the number of people living by themselves is increasing significantly due to the divorce rate and a general change in social trends as more people live by themselves.

The number of House- holds in the UK is predicted to increase from 20 to 26 million by 2020.

The percentage of the UK housing stock owned by landlords has increased from 8% to 11% since 1996 and is predicted to peak at 15% in 10 years time.

If first time buyers are priced out of the market, this could go even higher. In response, goverment policy appears to be moving towards the provision of social rented housing through the private sector.

Safe as Houses?

Stocks and shares have performed relatively poorly and company pension schemes no longer guarantee you a secure future. On the other hand, low interest rates and steady house inflation is continuing to provide excellent returns for landlords on capital invested.

By buying in the right areas, you can achieve a double return on your investment. On the one hand, you receive an income from rental profits (yield) and on the other, your property can virtually go up in value well in excess of the average 8.5% house inflation (growth) witnessed over the last 50 years.

Portfolio Potential

There are now over 50 lenders in the UK willing to lend on a buy-to-let property. The loan is not dependent on personal income but rather on the rent, so a twenty something on a low income with a little money to begin can become a landlord.

Each lender will fund 6 - 10 properties, so you can have hundreds of properties.

A property can be purchased brand new or fully modernised and ready to rent for a cash investment of 15% of the purchase price.

If you are interested in buying any of the investment property featured on our site or require investment property advice, then please get in contact with us - our advice and time is free.

Please remember we only feature the best real estate deals so demand is always high for the investments we feature - so time is of the essence.

Contact us via our contact page or call on 0044(0)1382 738039 or 0034 951 31 91 91 or you can email us at info@ppinvest.co.uk.