Buy to let property Investors on the increase! After the last property market crash it seems that the property investor is on the rise again. The number of buy to let property investors in the UK has reached 1.6 million in 2014 according to Her Majesty’s Revenue and Customs (HMRC). This represents an increase of 120,000 from the previous year.
After looking into various sectors of property investment, research found that student property was considered the best and most popular investment opportunity. Approximately 1 in 8 claimed that should they choose to invest, their preference of choice would be in student accommodation. 10 per cent would choose to invest in retirement property, whilst 9 per cent preferred holiday homes. However, this research did not take into account alternative investment or fixed rate investments where the investor did not own the asset. Having raised millions in fixed rate property investments over the years, we can see that there is an increase in property investments as a whole not just in the buy to let sector. Confidence is increasing over time.
However, despite the growing numbers reported by HMRC, certain concerns have been identified, with 36 per cent of UK adults stating that it is too risky to be a buy to let property landlord. Confidence in property investment was also shown to vary across the UK. The highest percentage of investors believing the market will boom was from London at 39 per cent. The next highest was West Midlands with 38 per cent. However, optimism was much lower from those surveyed from the North East and the East Midlands. They showed only 21 and 26 per cent respectively believing that the market will continue to grow. The proportion of optimism seemed to be lowering the further you travel up the country.