According to industry analysts British landlords have made £177 billion in capital gains over the past five years! This excludes rental income which spells big bank account booms for landlords across the nation. It’s clear that the housing industry is booming and as far as opportunities go, buy-to-let landlords stand to benefit the most from the price hikes.
The soaring house prices are largely put down to an increase in the national demand for rental properties, as well as a lack of new home build developments. This has meant many first time buyers have been forced to reconsider investing in property and instead, continue renting. For buy-to-let landlords these factors represent a lucrative opportunity to take advantage of the potential for higher rent yields. Not great news for buyers but a definite prospect for current home owners!
A recent report from leading UK real estate agent group Savills revealed the extent of the housing growth, with its figures indicating that the value of private housing in the UK has soared by 57% since the global financial crisis. This year marks the first time in history it has topped £1 trillion, with growth only expected to grow over the coming months. Industry analysts from Rightmove predict that growth is only set to continue, with rises of up to 30% over the next five years.
Lucian Cook, Savills Director of Residential Research explains that “the benefit of recent house price growth has become increasingly concentrated in the hands of private investors.”
While the market is great for current landlords the government is looking at ways to free up properties for new buy-to-let investors. The boom won’t last forever which means that property owners should make the most of the market while they can!
While the potential for profits may be more achievable than ever, landlords shouldn’t become careless. It’s critical that all buy-to-let investors protect their properties, and their tenants, with a comprehensive landlords insurance policy that covers a wide range of potential scenarios. From broken boilers and burst pipes to fire damage and tenant arrears, landlords insurance will ensure that all claims are dealt with quickly and efficiently. For the best deals from all the UK’s leading providers landlords are advised to hit up quote compare websites that scour the web for the latest offers. It’s a quick, easy and cost effective way to ensure that rental profits aren’t cancelled out by unexpected events.