buy-to-let investors
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Housing Market
PRS set to soar
The private rented sector (PRS) is expected to increase by 700,000 households to 5.5 million by 2020, accounting for one-fifth of the total housing stock in this country, according to a new report. A fresh study on the buy-to-let sector by Kent Reliance finds that the PRS now accounts for 18 per cent of all housing stock, after almost 150,000 new households were added to the PRS in the year to March. A higher number of buy-to-let investors entering the market coupled with capital growth have led to an average rise of 11 per cent in the total value of PRS property, or £97.8 billion, to £990.7 billion, with gains led by London, at £406.5 billion, followed by the South East at £147.6 billion. Andy Golding, Chief executive, Kent Reliance, said, “Buy-to-let has come of age, moving from a niche asset class to one big enough to rival the stock market. Landlords are seeing the benefit of a structural change in Britain’s housing market, with tenant demand ever strengthening. Yes, house prices are showing signs of steadying somewhat, but growth remains brisk.” If recent growth continues, the whole sector is set to be worth in excess of £1 trillion by…
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Uncategorised
Buy-to-let returns beat all other mainstream investments
Buy-to-let landlords have earned returns of up to 1,400 per cent since 1996, outstripping those returns from investment in shares, bonds and cash. The research by the Wriglesworth Consultancy, on behalf of Landbay, found that on average, £1,000 invested in a buy-to-let asset in the final quarter of 1996 was worth £14,987 by the end of last year. This was more than four times than the equivalent investment in commercial property, UK Government bonds or shares and seven times the return on cash. Despite a few downturns in the housing market over the past 18 years, including the slump following the financial crisis, overall strong levels of capital growth and soaring rental values have ensured that landlords have reaped the rewards. The analysis was based on a buy-to-let investor using the rental income to pay off their mortgage, clearing it after 13 years and cashing in during the final five. Many of those buy-to-let investors who have not sold their properties, but continue to hold on to their residential assets, may have found that the rental value of their property investments may have risen further in recent months. The latest HomeLet rental index shows that residential rents across the UK…
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