The Lack of UK Housing
In our latest blog post, Edifice Invest discuss the shortage of new homes in the UK which has become a hot political issue in recent years despite the Government’s numerous strategies to try and meet demand.
During a recent conference where Theresa May announced reforms to planning rules, the prime minister suggested that house builders are to blame for the UK’s chronic housing shortage, but Berkeley, one of Britain’s biggest house builders has said it simply cannot increase the number of houses they are building due to economic uncertainty, the high cost of moving house and a limit of mortgage lending.
Many have suggested that a “Mexican stand-off’ is now developing between house builders and the Government. But whilst demand is still outstripping supply, research by My Job Quote has found that more than 1 in 3 UK homeowners would be unable to afford their home if they were listed on the property market at today’s value. On average, it would cost £50,000 more to buy your home now than the original asking price.
This has spelt bad news for young people looking to get on the property market as the average age for first-time buyers has now reached record highs of 31, two years older than a decade ago.
As a result, young people are now turning to rental properties which have seen a spike in demand within the last few years. Research has shown that despite the rising costs, landlords could see net profits of more than £265,000 over 25 years. In light of this, even though the Buy-To-Let market has undergone a sea of regulatory and taxation changes which have altered market dynamics, there is still a healthy return to be found in property for committed investors. Statistics from the ARLA has shown that the demand for Buy-To-Let properties is increasing mainly due to the severe lack of new homes within the UK and because of the ageing population within city centres.
So, if you’re an investor looking to take advantage of the increasing demand for rental properties, Edifice Invest can help! We are experts in off-plan developments with an extensive investment portfolio offering returns of up to 15 percent per annum. Plus, you can rest assured that we have the experience and capability to deal with the developer and property management company too to provide a fully ‘hands off’ investment.
To discuss the latest opportunities with one of our advisors, fill out our contact form and we will be in touch.