The top buy-to-let opportunities for 2015
It has been predicted there will be a buy-to-let boom in Britain in 2015. From student property to commercial buildings, Auction House London takes a look at what’s being considered as the best buy-to-let opportunities for 2015.
UK residential buy-to-let property
An extra 120,000 potential investors joined the buy-to-let property market during 2014, lured by the potential of high returns, estimated at an average of 13.3 %. This equates to more than 1.61 million landlords, a rise of 8% during the past year.
During the coming 12 months the rise is expected to reach 11%, which works out at approximately £20,520 per property. With the average fixed rate low at 3.82% and variable rates in the region of 3.63%, loans are exceedingly attractive at the moment. A price war amongst lenders has led to unprecedented offers available on the market.
It has been said that the residential buy-to-let market, particularly in the younger age brackets from 18 to 35, where nearly half are renting, is extremely weighted on the side of the property owner. Figures show that an average of seven people, are chasing each available property. The figure of 1.2 million renters is expected to be reached within the next five years.
Student Let Properties
The UK is a popular country to study, particularly since local colleges have been able to offer degree level courses on a par with universities and overseas students see Britain as the ideal education country. Buying in areas close to centres of education and good transport links makes good sense for prospective buy-to-let landlords. This market section has now reached the two billion mark and become a major player in the buy-to-let market, even being hailed as the UK’s ‘top performing asset class’
Commercial property investment
Investment in the commercial property sector rose by 46% to £58 billion during last year. There may be a slight leveling off, but in general commercial property, particularly in areas outside of the major cities, should continue to be an attractive proposition. Competitive prices, along with potential good returns and a healthy demand, have suggested a rise in investment will continue in the outlying regions.
House prices in the UK
The health of the property market is expressed by the fact that during this year house values have increased by an average of 8.5% and expected to further increase by another 5% during the coming year. Economic conditions appear at present stable. Not only is employment and salaries up, but stamp duty cuts have been implemented. What’s more, with interest rates low the cost of living remaining level, if not actually falling – perfect conditions for buy-to-let entrepreneurs.
Healthcare property
The rise in demand for beds for the growing elderly population has seen an increase, with 1.5 million people in the UK, over the age of 85. This is set to increase to 5 million by 2050. It is expected that over the next 50 years residential and nursing home places would need to expand by 150%.
With the population getting older, more and more students coming to the UK and economic conditions that favour the lender, all-in-all there seems to be an air of buoyancy in the buy-to-let sector in Great Britain in 2015.
Auction House London is at the forefront of buying and selling both private and commercial premises. It has a mandate to keep you informed of up-to-date information and statistics concerning all areas of the property market