In recently released data, the value of Britain’s homes has reached over £6 trillion for the first time. In one year alone, the value of homes in the UK has risen by £376 billion and the number of homeowners without a mortgage have a total property wealth of over £2 trillion. Subsequently, this means the UK has an average house price of £218,474, up 18.9 per cent in five years.
Additionally, in somewhat unsurprising figures, around 40 per cent of this property wealth is owned by the over 65s. By contrast, only 3.3 per cent of this property wealth is controlled by the under 35s — the so-called millennial generation. The rising house prices have meant young people in the UK have been unable to get on the property ladder and as demand for rental properties has increased, the value of the UK’s Private Rented Sector has grown by 55 per cent in the last 5 years alone.
This imbalance in the UK’s property wealth has meant the over 65s are able to benefit from Generation Rent and many retirees, for the last 20 years, have invested in property to fund their retirement. However, since 2015, then Chancellor George Osborne and now Philip Hammond have been determined to reduce the attractiveness of Buy-To-Let investment as a way of combatting the housing shortage.
Despite the new tax rules on Buy-To-Let properties having little effect on the number of young people being able to afford their own home, the increasing demand means that this is sector is unlikely to slow down and the number of privately rented homes has risen by 28 per cent.
So, if you’re an investor looking to take advantage of the buoyant private rented sector in the UK, Edifice Invest can help! We have a wide range of Buy-To-Let investment opportunities available offering returns of up to 10 per cent per annum. Plus, we work closely with all of our investors so if you’re seeking a ‘hands off’ investment, you can rest assured that we have the experience and capability to deal with the developer and property management company too.
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