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UK Property Investment Increased By 8% In 2014


Thursday, February 12, 2015

Property Investment Increased By 8% In 2014

Property Investment Increased By 8% In 2014

Number Of UK Property Investors Up 8% In A Year

Interest in UK property investment continues to increase following the Government changes to the way pensions are controlled, allowing potential property investors to use buy to let mortgage products to release funds for property purchases early, as bricks and mortar still offer a far greater return than pension funds currently provide.

According to data recently released by letting agent, Ludlow Thompson, the number of property investors in the UK has increased 8% in the past year, rising to approximately 1.63 million landlords controlling around 3.1 million private rental sector (PRS) properties across the UK.

Record low interest rates on bank deposits and Government bonds and the fall in inflation has also calmed fears of a sharp rise in interest rates resulting in the private rental sector continuing to attract new investors into the rented property market because they would struggle to achieve comparable yields from other investment methods.Capital growth for residential property averaged better than 7% in 2014  (this figure is more like 16% for properties in London), whilst the FTSE-100 increased by only 0.7% in the same time frame.

There is currently a wealth of Buy To Let mortgage products available to property investors with over 820 different products on the market.

This means that the number of available buy to let mortgage products is now greater than the 772* Buy To Let mortgage products previously available prior to the property crash of 2007.

Decent rental yields on offer from property investments purchased with Buy To Let mortgages make property one of the few options for investors who want to avoid the volatility of the stock market.

The regulatory changes to the mortgage market that were introduced in April 2014 have made it much harder for potential first time buyers to secure affordable mortgages, meaning that they stay in rented properties for longer.


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Buy To Let. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.