The UK market is going through something of a golden age recently, with demand, prices and yields all soaring along with the temperature across the country.
Across all sectors it’s being observed that almost all indicators are going upwards across such classes as commercial, student, residential, buy to let, and more recently Build to Rent property.
We often get asked what Build to Rent actually means, and it’s straightforward in that it is property that is built specifically with the intention of selling to landlords and investors to rent out.
With the UK market performing so strongly over many years now, many cities are seeing lots of investment into this asset class for a number of reasons. Firstly, it’s a long-term investment that also creates secondary income, and secondly, the value of the asset increases over this time.
House prices in the UK have been rising for some time now, with an impressive growth of over 10% in just the last 12 months alone. This capital gain, along with rental income, means that UK Build To Rent is a very savvy investment for those looking to build a strong portfolio.
Dominating cities
New research reported by Property Wire has shown that this new type of asset class is now starting to dominate new property builds in London and other cities.
In the report, it said “In the five quarters leading up to the start of the pandemic, London had 5,767 Build to Rent completions. In the five quarters since the pandemic started, there has been 7,371 Build to Rent completions, a remarkable rise of 28 per cent. During the same time period, Build to Rent completions across the UK as a whole dropped by -11 per cent, from 16,055 to 14,267.”
There is a similar story being reported in other UK property hotspots such as Manchester, Newcastle, Leeds, and Liverpool too.
It has meant that when property projects are getting the green light, many more now are being built with the specific intention of selling them directly to buy to let investors, rather than direct to the residential market.
Increasing demand
Demand is also on the rise, with investors and landlords fighting over increasingly scarce resources which is, in turn driving up demand.
Build to rent is not just dominating skylines across the country, but also people’s interest and investing intent. Many are now looking to put their money in more reliable investment class with more secure returns as the global economy returns to health unpredictably and in a somewhat volatile fashion.
For many across the UK, Europe and the world, UK property offers this opportunity in abundance and gives a range of incentives. So, if you’ve been thinking about purchasing one of these properties, or expanding your portfolio, then what would the advice be?
The advice would be to get in touch with a good agent or company as quickly as possible in order to discuss what you’re looking for and what you may be able to get hold of.