The Rental Market is Growing – How Can You Take Advantage
Speculations keep flying back and forth on how the property market would be affected by the UK’s planned exit from the EU this year. Predictions are fluctuating from doom and gloom to strong and positive. What is, however, given is that there will be a period of adjustments as the country settles into its new post-Brexit political and economic reality.
Nonetheless, the rental market has proved resilient over the years, regardless of prevailing political or economic uncertainties, including the global financial crisis that happened a decade back. So, smart or experienced people are always keen on the property market for long-term investment as the sector has traditionally delivered significant gain pains.
Whatever shape or form Brexit takes, market projections for the rental markets remains optimistic as the sector continues to grow.
Why Investing Rental Property is the Real Deal
Low interest rates are helping to make the rental market more appealing. Mortgages are cheap compared to low returns on savings. Although the property market has had some financial crisis lows, it has steadily bounced back, pulling in more investors to research and snapping up valuable property units and corridors in the hope of their values rising.
Rental properties in London and other prime areas may have shot up and priced most people out of those areas, there are some areas in the UK still in the recovery phase after the financial slump and investors are focusing on those corridors for stronger returns on investors.
With mortgage rates at a record low, buy-to-let investors are now able to stack up deals. However, it’s wise to be wary of low interest as they will surely rise someday, which means only a good value investment will be able to stand the test. You should also make sure to get a good landlord insurance cover to protect you and your investment in case of any emergencies.
Keep an Eye on the Property Hotspots
Prime rental market locations like Manchester and Birmingham, along with other bustling hotspots like the Midlands and the North West of England, are driving the property market and pushing up the average rental values.
In Birmingham, for instance, house prices are growing at an annual rate of 5.6% — which is twice as fast as the national average. The city’s reputation as a popular student city with high job prospects seem to be the major factor making it a top attraction for students and young professionals.
The stock of the private rental market has also remained strong, with most regions in the UK seeing a spike in patronage in 2018, led by a growth of nearly 5% in London.
Taking Advantage of the Growing Rental Market
To take advantage of the growing rental market in 2019, you need to make sure you have easy and fast access to finance to enable you successfully complete a buy and avoid getting stuck in a property chain. Access to loans may, however, be hard as traditional lenders are becoming hesitant to provide funding amidst Brexit uncertainty. If you experience such hurdles, or you need a special financial package for your project, you should explore a number of other viable alternatives from finance providers ready to provide quick financial support for rental property projects.