Is Buy-To-Let The Future Investment Of Choice? - August 23, 2018

BTL imageryWith the average age of buy-to-let property investors reportedly dropping by over 10 years since 2014 from an average of just over 52 down to 42, it appears that investing in property for the future, whilst also obtaining a regular rental income, is increasingly becoming a more attractive investment avenue for people looking to capitalise on the increasing demand for rental accommodation across the country.

The reduction in age across both residential and student buy-to-let accommodation is more prevalent in residential over the student market where age averages have dropped from 57 (52 – student market) to 40 (44 – student market).

In addition to not just being the domain of older people, research has also shown that the buy-to-let market is also not stereotypically reserved for seasoned landlords either, with 9% of adults in the UK having shown an interest in obtaining a buy-to-let mortgage. If this were to be truly realised that would equate to an extra 4.8 million people becoming landlords during the calendar year of 2018.

Of this huge number, a third were encouraged and motivated by the potential opportunities the buy-to-let market has to offer, whilst a quarter were looking to enter the market following an inheritance. Though investment in property has always been popular and remains that way, the evidence strongly suggests the majority of property investors are searching for tenanted buy-to-let properties. As the demographic of the ‘landlord’ continues to change it is widely believed that this is a transformation that can only serve to strengthen and revitalise the market place in the coming years.

Further Analysis

Over half of those considering becoming landlords in the buy-to-let market have considered putting their investment into buying a house, with a slightly reduced number considering new build properties.

If ever there was a testimonial for the potential to be garnered from the buy-to-let market – especially since its recent regulatory and tax changes, it is the news that 1 in 5 of those presently as individual or portfolio landlords intended to remain in the buy-to-let market for an indefinite period of time – the percentage rising the longer they have been ‘landlords’ – whilst those with property portfolios expected to stay on the market for around 15 years, compared to 10 years for those with non-portfolio properties.

Conversely, and encouragingly, only around 6% intended to exit the market within the next 2 years.

With the aforementioned changes to tax and regulations governing the buy-to-let market, any concerns of an exodus of landlords and investors happening may well have been to some extent exaggerated, with evidence beginning to show that with the correct financial advice, planning and preparation, the buy-to-let market is still an incredibly attractive opportunity for a new generation of investors.

If you are an existing buy-to-let investor, or are looking to become a new landlord then One 77’s team of Buy-To-Let Specialists can assist. By calling 01249 474954 we will assign you your own one-to-one personal point of contact to look after your portfolio or future investment.

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