The demise of buy-to-let may have been predicted more than a few times in recent years, but statistics continue to be released indicating that the sector remains in fine health in 2019.
Residential property agents ludlowthompson, for instance, have released figures showing that rental income in the UK has actually gone up by 15% over the past 12 months, bringing the latest annual total to £18.7bn.
What does the news mean for property investors?
Not only does the aforementioned figure represent a major increase on last year’s £16.2bn, but the income that private investors derive from buy-to-let property also continues to account for a major proportion of the total income (£109.7bn) generated by investors last year, at 15%.
This compares to the mere 5% of the income received by private investors last year that interest from savings accounts made up.
It means that buy-to-let is actually three times more important in terms of income generation for UK savers than bank accounts and cash ISAs – a far cry from the days when investment in private rented property was very much a minority activity.
Nor should most observers be greatly surprised by this; after all, buy-to-let is renowned for the stable long-term income streams and capital growth that it can deliver. Furthermore, while price falls can affect buy-to-let much as it can any other investment category, the sector has avoided some of the intense volatility that has characterised the stock market over the last six months.
Now could be the perfect time to invest in buy-to-let
Far from the floundering sector that it has sometimes been portrayed as being in recent times, buy-to-let is benefitting from a series of indicators that now could be an excellent time for those considering buying private rented property to make their move.
Not only does the supply and demand imbalance of UK property mean landlords are able to achieve healthy yields, but there is also presently downward pressure on mortgage rates, which is boosting the affordability to landlords of expanding their portfolios.
What’s more, with the full economic consequences of Brexit yet to be known, property is continuing to fulfil its historic role as a ‘safer’ asset class in the eyes of many investors.
Finally, with a cost-effective rental inventory in Birmingham, London or Manchester able to be enjoyed by those landlords who turn to Yellow Oak Inventories LTD, you can have even greater confidence that the process of managing your property this year will be a relatively stress-free one.