This blog follows the buy-to-let market in Southampton. You'll find tips, guidance, and analysis that relates specifically to Southampton and you'll also find properties from all the estate agents in the town on here that may make decent investments. I own and operate Belvoir Lettings, a Southampton Letting Agent, and if you're thinking of buying a property to let in Southampton, I'm happy to offer a second opinion.
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Friday, 20 November 2015
Buy-to-let demand will continue to soar
Demand for buy-to-let is set to soar with each new generation
while home ownership will continue to plunge.
Fewer than half of those born in 1990 will own their own home by
age 40, according to new data from Savills.
Its latest Residential Property Focus 2015 reveals that 53% of those
born in 1960 could look forward to owning their own home by the age of 30,
rising to 71% by the age of 40 and 79% by the age of 50.
Of those born in 1980, just 35% owned their home by age 30, and
this is projected to fall to 26% for those born in 1990.
By age 40, most will be in rented accommodation, with just 47%
predicted to own their own home.
Jonathan Stephens, managing director of Surrenden Invest, a specialist
buy-to-let consultancy, said the figures spell good news for investors.
"Quite simply, falling rates of homeownership mean rising
rates of renters, so the growing situation in the UK creates a substantial
opportunity for those looking to make their money work for them by investing in
residential real estate.
“Of course, alongside this it is important to remember that the
area in which you invest is important too – a few miles difference,
particularly in major cities like London, Manchester and Liverpool, can have a
big impact on yields."
This is particularly true of London properties, he said. House
prices are projected to rise by 21.5% in central London and by 18.2% in outer
London over the next five years, according to Savills.