Property to Rent Liverpool, Letting Agents Liverpool - Housepoint
13/02/2014
Boom in house prices - time to invest

There has been a lot of coverage on the UK housing market lately, with journalists and politicians all scrambling to put their opinions and predictions forward. In amongst all of this information it is easy to get lost behind a wall of facts, figures and forecasts. This week’s Yakel Investments newsletter hopes to simplify the keys points and provide a clear picture of the current climate of the UK housing market.

One thing that is certain is that house prices in the UK are on the rise and look to continue rising over at least the next two years according to the Governor or the Bank of England Mark Carney. He recently revealed to MPs on the Treasury Select Committee that we are set to see a 10% increase in house prices well into 2016. This is great news for investors taking their opportunity and seeing bumper yields produced on their buy-to-let properties.

The predictions of Mr Mark Carney are also significant for the UK rental market, in that less and less people are able to buy property meaning that house prices are being driven up by a shortage and more and more people are relying on renting as opposed to purchasing. In fact, It was recently asserted by Nick Dunning, the commercial director at Britain’s largest listed estate agency, that a significant change is taking place in the UK rental market; with more and more of the so called middle-aged population are turning to renting as a long term option as opposed to a temporary solution., “It is a trend we have been seeing for quite a while as we are also finding that for many of these people renting is becoming a way of life and they are becoming more ambivalent to owning a home.” What this means for investors in the buy-top-let market is positive equity being produced from house price rises and  a much more stable rental income too.

Countrywide has reported that tenants aged over 30 increased by 5.8 per cent last month compared with the same period last year,. They now account for 59.3 per cent of all renters, underpinning the so-called “generation rent” phenomenon. In the North West, a 3 per cent increase in January took the total to 28 per cent. If you add this to the already booming rental market provided by Liverpool’s 80,000+ students currently living in the city, it is easy to see why the North-west of England, particularly Liverpool, is such an outstanding investment opportunity.

It appears that Liverpool is fast becoming the buy-to-let hotspot in the UK, if you consider the boom in the housing market across the whole of the UK, mixed with the affordable housing when compared to that of other big cities like London and Manchester.


 


 Written by: Luke Topping