Property expert and author David Lawrenson of www.lettingfocus.com will reveal why currently, and in the longer term, there is more money to be made in buy-to-let houses in a series of speeches at the Homebuyer Show (02 – 04 March, ExCeL London).
Demographic changes and over-supply of flats have recently made houses the more lucrative buy-to-let investment across most of the UK. A rapidly increasing percentage of young families are choosing to rent because it suits how they live or they do not want the commitment of buying. Although many families would prefer to live in a house with a garden than in a flat, UK planning policy has led to the building of high density flats regardless of demand.
The high demand for family houses has meant that prices of houses are climbing at a higher rate than those of flats and rental yields are also consistently higher. Recent figures from Paragon show that average rental yields on terraced and semi detached houses were 6.2% compared to a lower 5.5% for flats.
Lawrenson commented: “It is not just young people and couples who rent. It seems that a whole new sector of tenants is coming through – working families who like the flexibility that renting offers. In today’s hire and fire culture, this desire for flexibility is as true for families as for professionals with no children. These are tenants who have chosen to rent because it suits their lifestyle, driving up the demand for buy-to-let houses. In addition, landlords often find that houses are more flexible than flats as they can accommodate sharers, families or students more easily than a typical flat.”
Lawrenson continued: “In the future, government planning policies may shift towards the provision of more family homes but anyone buying property should be aware that it will take many years before this impacts on prices or rents.”
Lawrenson believes that buy-to-let could grow strongly and has previously forecast that as much as half of all properties in the UK could be second homes or buy-to-let by 2026, taking us back to where we were 60 years ago.
In his seminars at the Homebuyer Show, David will expand on his theories for the future of the buy-to-let market and divulge the ten most important rules that successful property investors consistently follow.
Nick Clark, managing director of the Homebuyer Show, commented: “As the number of British households and the proportion of people choosing to rent continue to increase, the buy-to-let market is still offering landlords strong returns. However, it is the most successful professional investors are the ones that know which type of tenants to expect in their chosen area and the type of properties that will best suit them. By talking to industry experts such as David Lawrenson, investors at every level can learn the secrets of success.”
