Now Is The Time To Consider Buying.
High fuel costs and record inflation have hit British households hard. For many people, this is not the time to consider major purchases and investments. With balance of payments becoming a real struggle across the UK, potential investors have at least temporarily retained their plans.
At the same time, the UK real estate market for house purchase and lease has reached a level not seen for many years. Although the tax preference is less and the cost of homeowners is higher, the private leasing sector is still a relatively safe haven for real estate investment.
But does this mean that it is the right time for investors to buy the prosperous BTL real estate market for the first time? Is today’s adventure a wise act, or is it waiting for the current uncertainty? What will it bring in the next few years?
Fast growing and competitive industries
You only need to look at the growth of the UK private leasing industry in recent years to see its appeal. Since 2017, the total value of the industry has increased by £ 239 billion. According to research, the current value of BTL industry will exceed 1.7 trillion pounds by 2022.
Despite these recent obstacles, UK real estate investors seem undaunted. According to the latest research, since 2017, the value of the residential leasing industry has increased by about 239 billion pounds, reaching 1.7 trillion pounds.
“In the past few years, many challenges have restrained investment in the private leasing industry,” commented Stephen Clark of Finbri, a bridge finance company.
“But facts have proved that the industry is flexible. We see that in this dynamic economic field, the demand for finance continues.”
If there are differences, economic uncertainty is only a catalyst for BTL market performance. At the peak of novel coronavirus, the average house price in the UK is also soaring.
From March 2020 to December 2021, the average market value of British housing will increase by 16%. Data shows that no matter what happens, entering the UK real estate market will almost always bring huge long-term capital gains.
Lenders welcome BTL investors
It is increasingly difficult to obtain the qualification of traditional guaranteed loans from mainstream banks. In contrast, many lenders have opened their doors to newly established BTL homeowners in a way they have not seen for some time.
Last year alone, the number of professional mosquito net commodities that could be invested in “purchase and lease” increased from 1311 to 235. At the same time, the five-year average fixed interest rate hovered around 3.5%, dropping to 3.47% in February this year.
Eleanor Williams, who represents MoneyFacts, said: “The BTL industry is facing drastic changes, changes in regulations and requirements. Suppliers are still keen to attract the first homeowner, which is very encouraging.”
All of this depicts the picture of the BTL industry. It is not only profitable, but also surprising that, with the unlimited and continuous rise of British housing prices and monthly rents, it is indeed time to consider buying the prosperous BTL real estate market in Britain.
