Owning your own property is a goal that the majority of people share, albeit for different reasons. Some simply feel comfortable in homes they can call their own, others see it as an investment opportunity. If you belong in the latter category, there are some things you need to know.
There is no doubt that buy-to-let property investments have been on the rise in the UK for the past 20 years. In fact, Britain has the mentality of needing to own their own property engraved in their minds. However, the term “buy-to-let” has recently been making headlines, and not in a good way. What caused this seemingly sudden shift and what does this mean for someone who wants to invest in property in 2019?
As previously mentioned, buy-to-let has recently experienced a lot of bad press. The most common complaint the media has is that this type of investment contributes to the inflation of house prices.
As a result, the Government has taken major steps to reduce the attractiveness of buy-to-let. Specifically, in the Budgets and Autumn Statement of 2015. The act introduced some tax changes and reduced the overall freedom the landlords previously had.
Another important event that changed the way the UK looks at investing in property in 2019 is, unsurprisingly, the withdrawal of the UK from the European Union (Brexit). Brexit is, without a doubt, the most important event in the United Kingdom’s recent history. Since the impact of Brexit on the housing market remains a topic of debate, most landlords are waiting for the storm to blow over before making any financial decisions regarding their property.
Another, albeit far less popular, trend that investors may look into is buy-to-leave. The phenomenon refers to investors buying a property but not renting it, instead opting to leave it empty and wait for the house prices to rise. Buy-to-leave is usually associated with London, as it is prevalent in London’s housing market. For instance, some sources mention that One Hyde Park, a prestigious residential complex in London, is only 30% occupied at any given moment.
The practice itself has often been criticized, with experts saying that it creates “ghost towns of the super-rich”.
Criticism aside, buy-to-leave might be a viable financial investment if you want to avoid dealing with tenants.
Residential property is bound to have its ups and downs in the short term. However, buy to let is still an achievable investment in the UK in the 2019 long term.
For example, HandyRubbish, a leading rubbish removal company in London, reveals that the amount of work in their sector is noticeably larger. On the same note, the company observes that the owners of property in London are frequently changing. This implies that the building rate in the UK is on the rise, meaning there is a high demand for property.
In addition, the population of the UK is growing, and the average number of people per household is decreasing. There are a lot of explanations for this trend, including the fact that there is an increase in divorce rates among couples.
Simply put, there are not enough homes in the UK to support the growing population. Another piece of data that supports this claim is the fact that the average price of a house in the UK in 2019 has risen by 1.4% compared to 2018. Generally speaking, this is great news for someone looking to invest.
Eclipse stands on St James Street, just 1km from Liverpool city center and the central docks. The pubs, clubs, restaurants, cafes, and markets that characterize the Baltic Triangle are all within easy walking distance, as are most of the city’s biggest employers: the universities, NHS hospitals, and financial centers. This investment offers our investors the perfect opportunity to own a title deed apartment in the heart of Liverpool where you will see both solid returns and capital appreciation.