Buy To Let Landlords Surveyed
In a recent report around 80% of those surveyed stated that they would consider the purchase of buy to let properties as one of the best ways to enhance their retirement funds. The survey of buy to let landlords was conducted by the Nottingham Building Society. The key question asked was whether the landlords would continue to build their buy to let portfolio in light of the new changes in stamp duty.
The majority of landlords surveyed stated that the stamp duty changes would not make any difference to them when it came to their plans for expanding their buy to let portfolio. Only 14% felt that the impact of the stamp duty changes was too much for them to continue enhancing their portfolios.
Enquiries For Buy To Let Properties At An All Time High
The buy to let market has been given a boost by a report which states that 85% of UK estate agents stating that they are receiving a level of enquiries that are higher than average from investors in buy to let properties that are looking to purchase rental properties. In fact numbers have reached their highest level in 12 years with a median number of 463 new rental property seekers being registered per estate agent branch.
One estate agent said that despite the stamp duty changes they are seeing record levels of buy to let property enquiries coming through each day. This proves that people still consider property investment is a very viable option. The returns that are possible from buy to let properties are superior to annuities, pensions and ISA’s. Buy to let provides the best returns and the initial costs upfront are usually recovered by rental income in the first few months.
Private Rental Costs Continue To Rise
In fact, buy to let is still the best performing asset class in the United Kingdom. Why? Because the demand for private sector rentals continues to outstrip supply and rental costs have again increased for the sixth consecutive year.
The demand in the lettings market is continuing to increase and the cost of renting has risen by 2.5% year on year to May of 2016 according to the Office of National Statistics. Rental costs have been increasing each year from 2010 and the yearly increases have been up to 3% a year. For 30 consecutive months the supply of private rental properties has failed to meet demand.
In England, the prices for renting increased by 2.5% but the figures were unchanged in Wales and increased 0.4% in Scotland. So in May of 2015 a £500 a month rental would now have increased to £512.50 each month. The inflation in rental prices is most likely to have been caused by the demand far outweighing supply. And there is nothing to suggest that this will change anytime soon.
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