Rental market growing in strength
It looks like the rental market will be on higher demand than ever this year and will continue to rule the property market. I bet you can guess what this means? Property investment will be on the increase, meaning more annual returns.
Property investment in and around the London area had a 4% increase in UK buyers in 2014, with 70% of sales coming from buy-to-let sales. The rental market will always remain the stronger market, unless the cost of buying a house dramatically drops, or mortgage lenders make it easier and more accessible for buyers to own a house. Sadly, we can’t see the latter happening anytime soon! So who makes up the rental market?
- Students. The UK is full of enthusiastic students wanting to move away from home to live in a house with their fellow Uni friends. Where there’s a university, there are thousands of students all looking for a place to rent.
- Young couples. As new romance blossoms into the next stage of their relationship, couples are more likely to rent together rather than buying a property. It’s a sensible decision. They need to trial out living together and discover whether they can cope with their other half’s bad habits long term. This will determine the next stage of their relationship which is buying a house, and, for first time buyers, it’s more difficult.
- Families. The cost of buying a house isn’t cheap and, although paying a monthly mortgage can often be cheaper than paying the rent each month, it’s getting the deposit together that’s the real struggle in addition to passing all the checks.
These are just a few of the rental groups.
We can’t see the property investment market fading out anytime soon, as people are always looking to rent a property, whether it’s for 12 months or for 12 years. This is why you should strike whilst the iron is hot and, with The House Crowd, property investment couldn’t be easier!