Whilst UK buy-to-let continued to thrive amidst uncertainty, there are tentative signs that the UK economy, on the whole, is recovering following the recent turbulence. Despite setbacks, it would seem that not only are property prices still rising quickly, but customer and consumer confidence are also returning.
Whilst it remains true that many are still planning to tighten their belts, the doom and gloom appear to be shifting, with news this week that petrol prices are coming down, and inflation seems to have peaked.
As reported by The Guardian, ‘Falling petrol prices pushed Britain’s inflation rate back below 10% in August in the first easing of upward pressure on the cost of living in almost a year.
The consumer prices index – the government’s preferred measure of inflation – dipped from 10.1% in July to 9.9% last month, with cheaper motoring costs more than offsetting the impact of dearer food.’
Despite expectations that the Bank of England will still increase interest rates further, UK buy-to-let remains very strong.
Investing in UK buy-to-let
Property prices are still increasing across the UK, with July seeing the fastest increase in prices in 19 years, with The Guardian once again reporting ‘The annual rate of UK house price growth soared to a 19-year high of 15.5% in July, official figures show, with a typical home having £39,000 added to its value in 12 months.’
This follows the release of data by Buy Association showing the rapidly increasing popularity of property investment in cities across the north and midlands.
The article notes that Manchester, Liverpool and Birmingham are amongst the most popular buy-to-let hotspots in the UK.
Of Manchester, it said ‘The average house price in Manchester city centre is now £258,442 according to Rightmove.
It is also one of the areas with the highest yields. The average yield for a one-bedroom flat, according to RW Invest, is 6.59%.’
It also said, of Liverpool, ‘yields can reach as much as 6.9% in some areas. In the past, the city’s postcodes have appeared in the top rental yields in the country.
The city’s strong student population makes it a popular rental area, but increasingly the city is attracting greater numbers of young professionals and older renters. Its city centre population is growing quickly, along with the number of startup businesses attracting talent.’
Is it time to invest?
Clearly UK buy-to-let is booming and now is an excellent time to invest. With savings rates low and not looking to rise any time soon and stock markets and cryptos continuing to struggle, UK property offers strong and reliable returns.
Why not get in touch with us today to discuss what types of investment properties we have available for you?
