10 MAR, 2017
Private Landlords have already been feeling like they have had ten rounds in the ring with Mike Tyson or being current…Tony Bellew for that matter!
The referee thankfully did not score against the investor yesterday and thankfully the budget did not include any further measures to make the life of the investor more harrowing.
Investors must be aware of the change in legislation coming into force next month with the abolishment of mortgage interest rate relief.
Many fear that rents will soar over the long term and the government will be forced to backtrack over time.
Over 20 areas in the UK have already seen the average rent paid for a residential property grow in excess of 3% over the last year. These findings highlight the growing affordability crisis facing the 4.3m tenants in the UK, and follow the government commitments outlined in last week’s Housing White Paper to create a fair and better-served private rented sector……now that’s an article in its own right!
Statistics suggest that by 2025 more people in the UK will rent rather than own property much like the rest of Europe
The analysis suggests these 20 areas, where rental growth is reaching unsustainable levels, should now be the prioritised focus for government, developers and landlords. The current pace of growth means a tenant in Luton (the area with the fastest growing rents at 6.5%) is now paying an extra £528 over the year on rent, bringing total annual rent paid to £9,354.
With basic economics in mind… there are more “bottoms than there are seats” and the rental market is very very strong, demand outstrips supply etc etc surely property prices will remain strong? The debate continues…
Complete RPI Ltd, a UK specialist, have maintained a 98% occupancy across their portfolio for the past three years UK nationwide which makes interesting reading.
Post-Brexit, changes and new report reveal that currency shifts are driving a fresh wave of property buyers based in the Middle and Far East taking advantage of a significant “discount” in UK real estate, this combined with the uncertainty of new leadership and insecure financial markets make UK real estate still a very safe bet for the wary investor.