REASONS FOR A UK BUY-TO-LET PROPERTY INVESTMENT IN 2021
With the lockdowns witnessed over the last 12 months having a mostly damaging effect on the wider economy, it has come as a surprise to most that property has weathered this storm and has come out the other side stronger than ever.
With a 7.5 percent increase in property prices and a 1.4 percent average increase in rental prices across 2020, many will be hoping that 2021 remains as strong for the market – and forecasts expect they will. In fact, most experts have favourably adjusted their predictions for the property market because of several reasons, the first being the Governments vaccine rollout.
The vaccine rollout
The vaccine rollout is proving to have a fantastic impact on the housing market. Property experts Savills anticipate that house prices will rise by roughly 4 percent over the next 12 months across the UK, up from its previous estimate of no growth.
The positive forecast is a direct result of the fantastic rollout evidenced across the UK, with over 23 million people vaccinated at the time of writing. With daily COVID cases falling, the housing market is far less likely to be disrupted and the remaining pent-up demand to move or invest in property is set to be released with restrictions easing.
Government support measures
The support measures introduced (and sustained) by Government are also contributing to a buoyant housing market. The three-month extension of the stamp duty holiday has proven to be popular, with Knight Frank commenting it was the ‘right thing to do’ with completions interfered with because of lockdown.
New sales agreed remain positive and are well above the pre-pandemic norm. When combined with high levels of mortgage approvals and a recovering economy, there is little reason to expect anything but a rise in prices and activity in the property market, in contrast to what was predicted at the start of the year.
It is worth noting that growth is likely to be strongest outside of London, with price growth most evident in the North. With a rise of 28.8 percent predicted over the next five years across the North of the UK compared to a 12.6 percent rise in London, investors will benefit by focussing their search here.
Here at Sequre, we ensure that our investments are high yielding but also future proof. We ensure property investments are sourced in high growth areas whilst offering investors exclusive discounted prices using Sequre’s bulk buying method.
Rental demand continues to grow
Despite the obstacles faced in the buy-to-let market over the past few years, activity in the sector has never been greater. In fact, rental growth outside of London hit 8 percent last month, a new all time high. For perspective, the average rent for a newly let property is on average £68 higher than it was in February 2020.
Over the past five months, properties being purchased as an investment has also grown. This is because it is an opportune time for investors to purchase, taking advantage of the savings available through the stamp duty extension, the positive forecast for activity and growth in the market and the continued rise in people seeking rental property. Property has proven to be an incredible investment asset over the years, and with question marks remaining over the health of the UK economy, we believe property to be the safest investment you can make at this time.
Sequre Property Investment are specialists in sourcing high-income producing buy to let property investments in key areas across the UK. Check out our available investments here, or to get in touch, you can contact us here.
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