The recession has caused many problems, and the effect it has had on house prices is just one of them. As we all know, house prices have fallen substantially in recent times, and it has been reported that in 2013 they are predicted to stagnate, or even worse, fall even more. Even though the economy is starting to pick up somewhat, the benefits are yet to alter the housing market, however there is one sector that has benefitted – the buy-to-let.
It has been reported that even with the problems in the economy, the buy-to-let market is still proving to be profitable – especially as rent prices are on the up. A survey has even shown that buy-to-let is set to be this year’s most popular career change, and you can see why when you consider that rent prices have risen by almost fourteen per cent since 2009, and may even raise another two per cent this year alone. Furthermore, the population of the UK has increased vastly over the past ten years, and the number of people renting has upped from 31 to 36 per cent, meaning that demand seems set to continue rising.
Those that own buy-to-lets in London are currently seeing the biggest amount of renters, with almost 45 per cent of all households in the capital renting. Furthermore, LSL Property Services have revealed that the average London rent rose 0.9 per cent last October, and that the average rent for a two bedroom home is £1,102. If you choose to invest in a buy-to-let in London you will also be pleased to hear that rent prices are predicted to increase by 26.4 per cent in the next five years.
The increase in buy-to-let landlords has created some problems however. Many of those that enter into the business have not properly done their research, meaning that they do not always know the legal requirements they need to adhere to. Furthermore, many underestimate the amount of work that goes into the upkeep of a property, or the importance of having landlords insurance. If you are thinking in investing in a buy-to-let then make sure you research the market, and maybe take some classes first to prepare you for your new career.