Despite other economic worries, it seems very much that UK investment property and buy-to-let remain in a very strong long-term position, offering stability and strong returns for investors across the country.
With all the current political upheaval, as well as the economic issues, it’s reassuring to have this kind of economic stability, especially as other forms of investment like the stock market and crypto, are struggling so much.
One issue that has come up time and again in the current race for Prime Minister is housing, and the large gap between supply and demand, creating high rents and huge rental demand.
Up to now, it has to be said, neither of the candidates has said anything particularly inspiring in this regard, and it’s reflected in the fact that rents are growing faster than ever, especially in urban centres and apartments in city centres.
Investment property sees rents rise
In data released by Rightmove, it was revealed that rents have risen by their quickest rate at any time since they started recording the data 16 years ago.
As reported by Property Investor News, “Average asking rents outside of London hit another new record of £1,126 per month, rising 3.5% from the last quarter and by 11.8% compared to last year.
This increase in average asking rents means that rents outside of London are rising at the highest annual rate Rightmove has ever recorded in 16 years of reporting. Monthly rents have now risen by 19% (£177) since the pandemic started two years ago.
By contrast, it took eight years pre-pandemic to reach the same level of growth, illustrating the rapid rise in asking rents since the start of the pandemic. This quarter’s 3.5% jump is the second highest quarterly rise in ten years.”
This represents an enormous jump in monthly income for property investors and landlords and is likely to lead to even more interest flooding into the UK investment property sector, despite the cost of living crisis that many feel may stall property price growth.
Ultimately, over the longer term it’s obvious that house prices will almost always rise over a five to ten year period, and there’s really not much to suggest this will change.
Having said that, as an investment, you’ll tend to find that many property investors would much rather see their yields and rental income rising, rather than a rapid increase in asset value, as this is largely illiquid and not accessible in the short term.
All indicators for now are pointing towards the fact that rents will continue to rise due to the combination of a lack of supply in the market and huge tenant demand, making now the perfect time to invest!
If you’re looking to purchase a UK investment property, then why not get in touch with one of our investment experts today. We can run you through everything you need to know when it comes to investing in buy-to-let property and find the opportunity that suits your investment needs.
Alternatively, if you’d like to learn more about the buy-to-let market in general, why not take a look at our guide to all things UK buy-to-let here?