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Number of tenants Renting Property Set To Overtake Number of Home Owners By 2025

 

Renting To Overtake Home Ownership By 2025

According to a new prediction from the professional services network – Price Waterhouse Cooper, (PwC), the number of tenants in rented properties will outnumber the overall number of property owners with mortgages in less than a decade.

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Pension Freedom Fuels Increase In UK Property InvestmentPension Freedom Fuels Increase
In UK Property Investment

Since UK pensioners were granted full control of their retirement savings in April 2015, an estimated 60,000 (70%) pensioners have taken advantage of their ability to take some or all of their accumulated pension in a lump sum, with many opting to put their cash into property instead as an alternative to annuities, shares and bonds.

According to the latest Global Real Estate Outlook report published by property investment company IP Global, property remains a far more predictable and stable longer term option compared to alternative investments in the stock market.

In the UK, property prices in London and Manchester are leading the way, with prices in Greater London increasing by 12% in the last year alone.

New properties in Manchester may appear to be valued at less than half the average of London properties, however, residential property prices are expected to continue rising to close this gap, with new projections putting Manchester’s property price growth at a staggering 26.4% by 2019.

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UK PRS Rents Highest In EuropePRS Rents Still Increasing

Rent paid by tenants in the UK’s private rental sector, (PRS), increased by 2.1% in the 12 months up to and including March 2015, according to the latest published figures released by the Office for National Statistics (ONS), drawing claims from the National Housing Federation (NHF), that the UK is the most expensive country to rent property in within the European union.

In the 12 months to March 2015 UK PRS rents increased by:

  • 2.1% in England
  • 2.1% in Scotland
  • 0.8% in Wales

UK PRS rents are the highest in Europe, taking up 40% of tenant income despite having the shortest length of secure tenancies. In comparison our European counterparts only pay an average of 28% of their income on rent.

The NHF analysed the ONS data and found that on average UK PRS rents of approximately £750 per month for properties were almost double the rental costs of dwellings in countries like Germany and Holland, where average earnings are similar. However, it is worse for tenants in shared UK properties, who typically spent around 55% of their income on rent.

Across Europe, 43% of tenants had moved property in the last five years while in the UK this figure was more like 77%.

When the figures are analysed more closely it works out that approximately 23 minutes of every hour worked by UK PRS tenants is spent on rent; elsewhere in Europe, it is more like only 17 minutes.

The NHF also showed that the UK has repeatedly failed to invest in its own housing stock when compared to European standards, between 1996 and 2011 only 3% of the national Gross Domestic Product (GDP) was invested in UK housing, compared to 6% in Germany and 5% in France.

Other findings from the analysis include the fact that 72% of tenants renting in the UK private rental sector are employed compared to 62% of residential owner-occupiers.

NHF chief executive David Orr commented on the findings, stating: “UK tenants get a raw deal in comparison to their continental counterparts. High rents are just one symptom of the UK’s housing crisis, as a nation, we are simply not building enough houses due to under investment and problems with the land market.”

The Increasing Need For Student Property

The Increasing Need For Student Property

Student Property: Just How Great Is

The Need For It?

When it comes to tactical property investment, it would appear that the UK student property sector could be one of the shrewdest and lucrative choices property investors can make right now.

In 2013 over £2 Billion (GBP) was pumped into the student rental sector by savvy property investors who calculated the increased potential yields were well worth the risks.

This is because demand for student accommodation is at a record high and seems almost certain to continue increasing due to the growing number of UK and overseas university applications being made by prospective students and the increasing number of places being offered on courses by universities in order to attract student interest.

The UK is the current leading host country for attracting international students, with higher demand for places from foreign students than the USA, making our nation the world’s unopposed central student hub, and with good reason, our higher education system is among one of the best in the world, so it is of little wonder that many world leaders are choosing to send their children here to give them a head start in life. And the way current demand for university places is growing suggests that this top education status will not be changing any time soon.

Year on year there has been an increasing number of international students seeking a decent place to live, among fellow undergraduates, while they embark on their studies. Property investors are looking for properties within the

This means that in many UK university towns and cities, market rental prices will inevitably increase due to the increased demand for dedicated student properties, and property investors are virtually guaranteed to see a quick return on their investments because of the overwhelming need for their services.

Yields in student housing are 5-6% higher on average than the standard residential property in the private rental sector returns are well worth the effort.

See the infographic below to view the most important statistics on the current climate of Student Property Investment in the UK today.

Written by Braedon Frank
AspenWoolf.co.uk

Student Property Investment

Created by Aspen Woolf
Reena Shares How To Get Over £100k Profit From Property In Just 9 Months!

Reena Shares How To Get Over £100k Profit From Property In Just 9 Months!

Reena Shares How To Get Over £100k Profit From Property In Just 9 Months!

Our friend, Reena Malra, “The Queen of Lease Options” will be running a Free Live Online Interactive Training and Case Study session on How To Really Profit From Property this week on Wednesday 10th June @ 8pm.

After attending Reena’s last exceptionally informative online training session, I can tell you it really was really insightful to hear, not only from Reena, but also from one of her very successful lease option mentee’s on how they are making huge profits from property!

We have been into property for a number of years and we learned so much from Reena’s last session that it opened our eyes and a few doors and we have only utilised just a few of the tips we learned, so this session is very exciting for us, that’s why we are sharing this fantastic FREE opportunity with you!

Discover How YOU can get £118,920 (GBP) Profit from Property in just 9 months WITHOUT…

  • Help from the banks
  • Using any of your own money
  • Relevant experience!

Register Here For This Free, Live Interactive Training!

Here’s what you can look forward to learning on the night:

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Looking For A Buy To Let Mortgage?

Quarter Of Potential Property Investors Don’t Know How To Apply For Buy To Let Mortgages

New Research Discovers That Quarter Of Potential Property Investors Don’t Even Know How To Apply For Buy To Let Mortgages

New research by a specialist mortgage lender has discovered that an amazing 28% of would-be property investors don’t know how to apply for a buy to let mortgage in order to finance their property purchases.

The figures show that 1 in 4 potential property investors considering investing in property to boost their retirement income don’t know how to apply for a buy-to-let mortgage to get started on their property investment journey.

The research, conducted by specialist mortgage lender Kensington, also found that 54% of people approaching retirement age would consider investing in property using buy-to-let mortgages in order to help increase their income in retirement, but many didn’t know what they needed to do or what evidence to provide in order to apply for the correct type of mortgage.

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Change in Capital Gains Tax Rules for Non-UK Resident Landlords

Change in Capital Gains Tax Rules for Non-UK Resident Landlords

Change in Capital Gains Tax Rules for Non-UK Resident Landlords

Last month – 6th April 2015. the legislation concerning Capital Gains Tax (CGT) for Non-UK resident landlords came into force, which may seriously affect Non-UK property owners when it becomes time to sell their property assets in the UK.

Any sale of residential properties in the UK concluded before the date of the legislation change, whether the property concerned was a main residence or an investment property and owned by Non-UK resident, should not incur any additional tax charges. 

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NLA Publishes Landlords At A Glance Guide To Voting

NLA Publishes Landlords At A Glance Guide To Voting

NLA Makes It Easier For Landlords To Vote
With At A Glance Guide To Main Political Party Manifestos

The National Landlords Association (NLA) have decided to make it a bit easier for floating landlord voters who may not have decided who they intend to vote for yet, by compiling a short at a glance guide to where each political party stands on key policies related to property ownership in the UK private rental sector and landlord life.
As we published on Spotlight yesterday, every political party have their own views on each of the following measures:

  • Rent Control
  • Longer Tenancies
  • Landlord Licensing
  • Landlords’ Register
  • Letting Agent Fees
  • Landlord Tax

Tomorrow is polling day in the UK (7th May), so if you haven’t already decided which of the political parties should get your vote as a landlord and business owner, the National Landlords Association has decided to make it a bit easier for floating landlord voters by compiling a helpful guide to where each of the main political parties stand on key landlord and property related policies.

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Will The Housing Crisis Win The Election?

Will The Housing Crisis Win The Election?

The Politics Of Housing

It is still generally acknowledged by all political parties that there is a housing shortage in the UK, and each political party wants to offer the public alternative methods of tackling the problem in an attempt to win electoral favour.

Most political parties see the housing crisis in the UK as a possible election winning issue and each party’s election manifesto promises the general public many things, including further private rented sector (PRS) reforms and the introduction of additional legislation. There isn’t much offered by any political party for landlords, except for the promise to put an end to the private rental sector.

A recent survey by Ipsos MORI research published in January 2015 discovered a confusing conundrum, in that:

  • 75% of the public agree that there is a housing crisis in the UK
  • 48% of the public disagree there is a housing crisis in their locality

The publication of each political party’s election manifesto is intended to give the public a clearer indication of the housing priorities of the UK’s next parliament.

However, despite claims of a housing shortage nationally there are still some UK regions that have large proportions of derelict and abandoned properties, many still in a habitable condition.

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Liberal Democrats Announce Help To Rent Scheme

Liberal Democrats Announce Help To Rent Scheme

Help To Rent Scheme To Support Young Workers 

Liberal Democrat leader Nick Clegg has announced plans for a new ‘Help to Rent’ scheme should his party get elected to power in May. The scheme is intended to support young workers who want to move out of their parents homes and rent their first property in the private rental sector (PRS).

According to some of the latest research it is thought that around two million young working adults still live with their parents because they cannot afford to move into a property of their own, either purchased or rented.

The proposals for the Help To Rent scheme will include a government loan of up to £2,000 (GBP) in London, and £1500 (GBP) in other UK regions to cover the cost of tenancy deposits, with loan repayments staged over 12 or 24 months.

To be eligible for the proposed Help To Rent scheme and secure a loan for a deposit, tenants would need to be in paid employment, aged between 18 to 30 and not be property owners or seeking a tenancy in social housing provided by local authorities. 

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There Will Never Be A Better Time To Invest In Property

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