The buy-to-let opportunity in the UK has exploded in less than a decade. This is evidenced by a flurry of recent TV programmes showing hundreds of ordinary people who are creating extraordinary wealth for themselves.
“Rental demand will nearly double inside 10 years”
Centre for Economic Business Research
The unstoppable rental boom.
Unlike other European countries, our population is expanding significantly, predicted to reach 62.7 million by 2016 compared to 58.8 million in 1996.
Also, the number of people living by themselves is increasing significantly due to divorce rate and a general change in social trends as more people live by themselves. The number of Households in the UK is predicted to increase from 20 to 26 million by 2020.
The percentage of the UK housing stock owned by landlords has increased from 8% to 11% since 1996 and is predicted to peak at 15% in 10 years time.
The first time buyers are priced out of the market, this could go even higher. In response, government policy appears to be moving towards the provision of social rented housing through the private sector.
Safe as houses.
Stocks and shares have performed relatively poorly and company pension schemes no longer guarantee you a secure future.
On the other hand, long term house inflation is continuing to provide excellent returns for landlords on capital invested
A buy-to-let mortgage is not dependant on personal income but rather on the rent.
Each lender will fund 6 – 11 properties, so you can have hundreds of properties.
With the emergence of buy-to-let ‘property packagers’ like myself, you don’t even have to leave the house to do it.
A property can be purchased, fully modernised and ready to rent for a cash investment of 15 – 30 % of the purchase price.