Popularity of buy-to-let continues to rise, with the number of investors in the sector hitting 1.75 million for the first time.
- A 7% increase in buy-to-let investors in the last 12 months saw numbers reach record levels
- The sector saw total rental income, minus costs, jump by 8% to £14.2 billion
- Build-to-rent offers property investors an even better opportunity, with the sector set to be worth £50 billion in less than four years
The number of buy-to-let investors has topped 1.75 million for the first time after a 7% increase in the past year.
A report by estate agent ludlowthompson said rental income, minus costs, jumped by 8% to £14.2 billion.
Years of low interest rates are leading investors to snap up residential property to rent out, said the report.
Stephen Ludlow, the estate agent’s Chairman, said: “Investors continue to be drawn to the buy-to-let market as the returns routinely outperform those of other investments.”
“Buy-to-let investments are a highly popular alternative to the volatility investors often risk when investing in the stock market.”
The Bank of England stated earlier this month that demand for buy-to-let investments was unlikely to ease. Property remains a tangible asset, as prices continue to increase and demand overwhelms supply.
However, there is an alternative to traditional buy-to-let that offers greater returns for property investors. Build-to-rent, a sector estimated to be worth £50 billion by 2020, provides high-quality developments designed with the modern tenant in mind and frees up traditional stock for owner-occupiers.
With over 50% of 20 to 39-year-olds in the UK set to be renting by 2025, 250,000 new homes are needed every year to meet demand from a generation who no longer see homeownership as a sign of success. Build-to-rent is created to meet this demand.