Miller Homes East Midlands has forecast that this year will be the year of the investor. The builder has a portfolio of developments throughout the region and they expect another buy-to-let boom as rental values in most of the East Midlands are at an historic high.
Recent research seems to back up Miller Homes’ confidence in the market as the findings suggest that almost a quarter of landlords expect to buy additional properties and protect it with cheap landlord insurance sometime this year, while just 8% are considering reducing their portfolio. First time buyers in 2012 are facing difficult challenges and many believe they face the prospect of years of saving up for a deposit. Builders including Miller Homes along with the coalition are working hard to make home ownership easier to achieve with schemes such as FirstBuy, but there is still a widespread perception that owning a home is not achievable and as a result, many are turning to renting as the only long-term solution.
Paul Walters, regional sales manager for Miller Homes East Midlands, said “According to recent data from the LSL Property Services Buy-to-Let Index, the average rent in England and Wales has never been higher. Demand for quality rental properties is continuing to soar and anecdotal evidence suggests there is fierce competition among tenants to secure a home – particularly in prime locations. We have begun to see a marked increase in the number of landlords looking to capitalise on the current situation and we expect this upward trend to continue throughout 2012.”
The United Kingdom is experiencing the worst housing shortage since the Second World War which means conditions are looking favourable for savvy investors. Landlords are also deciding to buy more three-bedroom houses than before as the rent they can charge will bring them high rewards. With low returns on savings and record low interest rates, buying a property looks an increasingly attractive investment proposition for landlords.