Northwood’s financial director Gemma Goodson examines the current rental market.
The UKhousing market continues to shift and change. In 1995 home ownership was the norm, saving to buy for the first time took (on average) just one year and a 5% deposit was all that was needed. Fast forward 18 years: 8.5 million people now privately rent, it takes eight years to save enough to get on the property ladder and the average deposit required is 20%.
It’s hardly surprising that there is a whole generation whose only option is long-term renting. Rental incomes have steadily increased over recent years and are set to continue, meaning that there is potential for buy-to-let landlords to bring in a steady, regular income. But where’s best to invest?
As we have previously written on the blog, it’s important to buy in an area you know so that you can make an informed decision rather than going in blind in an area that you live miles away from and have no idea about. However, it’s still useful to know which have been earmarked as the buy-to-let hotspots in 2013 and the following 10 have been identified by the Daily Telegraph.
1 London, Victoria/Pimlico
6 Milton Keynes
If you are considering investing in a buy to let property, Northwood’s buy-to-let mortgage finder is an on-line tool that enables landlords to research and compare a comprehensive range of products and quotes from across the mortgage market and submit an application. Unlike many mortgage brokers, the service is completely free-of-charge. Find out more by visiting http://www.northwooduk.com/mortgages