First-time buyers going straight into buy-to-let
Growing numbers of first-time buyers are putting their money into properties to let out miles away from where they themselves live, it has been reported.
While salaries in big cities such as London tend to be higher than those on offer elsewhere in the country, property prices are also much higher.
This leaves many would-be buyers are unable to buy a flat or a house close to where they work, meaning growing numbers are turning to buy-to-let as a means of getting onto the property market.
According to the Daily Telegraph, professionals based in London are driving the trend, with many opting to stay in the capital in order to concentrate on their careers and to carry on renting there while they themselves rent out a property in a smaller town or village many miles away.
Though most opt to go through a letting agency since they are simply too far away to deal with their tenants directly, the returns on offer are still sufficiently attractive, particularly as the number of people being forced to rent carried on growing, boosting competition for properties and so pushing monthly rates up.
“I wanted to buy a property for an investment but wasn’t able to afford anything in London – mainly because of the size of deposit required. So I bought a three-bedroom link-detached house in Burton-on-Trent in 2011 while renting in Bethnal Green,” one first-time landlord told the paper.
At the same time, however, LSL Property Services has reported that rental increases in the private sector have been slowing in many parts of the country, with average rents in England and Wales up by just 1.8 per cent over the past 12 months.
Article courtesy of UKNetGuide