Landlords look to the North West to secure double-digit rental returns
The UK buy to let sector is continuing to present itself as one of the best areas of investment according to latest industry data.
Recent findings collected from the Halifax have indentified that UK house prices increased by 1.2% in October 2011 with the average home in the UK standing at around £163,311. While the increase shows that the UK housing market has “proved resilient” in recent months, those entering the property market, particularly first time buyers will be less likely to afford homes in the UK, forcing many to rent instead.
Almost 4 million properties (2010) are in the Private Rented Sector providing homes for 1 in 6 households and, as demand for rented property continues to grow with the agency network Countrywide highlighting that rental properties now take an average of just 12.7 days to be let, with an average of 5 prospective tenants competing for each property, rental rates are rapidly increasing reaching record highs of £718 a month (LSL Property Services, Sept 2011).
Ray Withers, Director of Buy-to-Let experts Property Frontiers comments,
“With demand outstripping supply in the Buy-to-Let market, those with enough capital to invest in the growing Buy-to-Let arena are benefitting from some of the highest monthly returns on record. Big rental returns from UK property have alerted overseas investors to the UK, attracted not only to a solid market from which to reap weighty returns, but also a safe and reliable place to invest.”
In terms of location, the North West of England has been pinpointed as offering some of the best opportunities for investment within the UK seeing a 20% rise in rental rates this year alone due to the unprecedented demand for rental accommodation.
In the city of Liverpool, demand is fast outstripping supply due to the reduction in home ownership and the number of new homes being built (well below the Government target of 250,000 pa). This has led to an increase in landlords purchasing apartments in Liverpool at below market values in order to capitalise on the growing Buy-to-Let market.
Meanwhile, demand for accommodation in and around the city centre also continues to rise as more students and young professionals enter the city with one residential lettings agency reporting that rental levels are now 10% higher than last year.
For investors looking to snap up a lucrative deal in a flourishing market, Crete Tower, the second tower within the prestigious development comprised of 64 high quality 3 bedroom apartments within a private gated community located north of Liverpool City centre could provide the answer.
The development will include an on-site gymnasium, management office, on-site security, CCTV and 128 parking spaces while all units shall be beautifully decorated and delivered ready to let with carpet, blinds, light fixtures, and internet connection.
All apartments in Crete Tower’s sister building sold out within a matter of weeks and so with units costing just £69,000 for a 3 bedroom apartment – 21% below market valuation with a 10% net rental guarantee for 3 years this is an opportunity too good to miss.
For more information contact Property Frontiers on +44 (0) 1865 202700 or visit www.propertyfrontiers.com.