The profile of Property Investors is changing…
– and all the latest stats from the market confirm this.
There are a number of reasons. First canny investors, like you and me, have seen the opportunities from the rental market. Many of those joining us are interested in building a profitable business – and some are looking for pension planning.
Landlord Assist, the nationwide tenant referencing service, says the new landlords drawn to property as a result of the poor economy have changed the face of the buy-to-let market.
With more people choosing to rent than ever before – due to the high deposits needed to get on the property market – and demand for rental properties forcing rents to record levels, the buy-to-let market has witnessed a wider range of landlords entering the market for the first time.
According to Graham Kinnear, Managing Director at Landlord Assist, one of th ereasons is not seeking opportunities, but a large number of reluctant landlords – because they have been unable to sell their properties in the downturn.
Yet others are looking to capitalise on low interest rates, which has improved rental returns.
“We are seeing more and more landlords nearing retirement age, so-called ‘grandlords’, entering the market with the intention of supplementing their state pension. Property is seen as a great hedge against inflation and many hope that it will provide them with a regular income and a great way to top up their retirement pot.
In the late nineties and noughties we saw young people in their late twenties and early thirties determined to build property portfolios as an investment to provide a lump sum upon sale. Whilst we still act for a large number of landlords who fall into this category we are seeing slightly older people getting into the market, perhaps, with a more common aim to be to get five houses bought and paid off in time for retirement.”
Stephen Parry, Commercial Director at Landlord Assist says:
“Landlords of all ages appear to be placing less focus on the capital growth prospects and more interested in the income ability of a property investment. This may be as a result of the lessons learned through the downturn or it may be that they are thinking ahead and viewing rental income as a pension provision instead.
In addition to this we are also seeing landlords who are managing their properties as a type of trust to help secure their children’s’ future.”
Mr Kinnear says the emergence of new landlords in the market has not only helped to address UK housing shortage but also changed the perceived negative image which has historically tarnished landlords.
“The image of the private landlord has changed so much from the poor image and reputation it used to suffer from. Renting has become more appealing and socially acceptable as a result of the recession and the changing landscape of the sector has helped the role of landlords to be recognised as a business model too.
There is wide-scale confidence in buy-to-let at the minute, and with the promise of low interest rates for the foreseeable future and the acute housing shortage in the UK, we expect the sector to remain attractive for some time yet.”
All this confirms what we already know – there are still great opportunities to make money from the rental end of the market.
Of course with the upturn in the economy, although it’s early days, other opportunities, for capital growth, will also return.
All in all, it’s a great time to be investing.
So if you want to find out more about property investment, or are looking to expand your contacts or knowledge, then do make sure you come along to our next Property Investment Meeting – PIM – on Thursday 26 September 2013 at Holiday Inn Bristol City Centre – we have a great headline speaker, Aki Ellahi.
Plus it’s a great networking environment and there’s plenty of time to chat to property professionals and get all the latest inside info!
We have a great 2 for 1 offer too – so you can bring a friend or partner free.
To Your Property Success
Del Brown, Property Options