Buy-To-Let Forecast Down, First-Time Buyers Up

Hunter Finance lends to developers in London and the South East

Over 365,000 first-time buyers were recorded across 2017, a substantial increase of 7.4% compared to 2016 and more impressively, the highest number since 2006 according to UK Finance. As first-time buyers continue to increase, we continue to expect a growing demand for new homes for 2019.

Industry experts believe that popular government schemes, such as help-to-buy, have enabled people to get onto the property ladder for the first time as well as lower deposits and cheaper mortgage deals. Because of this, we anticipate that profit margins for property developers will increase as we expect higher demand for smaller builds, which could allow you to maximise the potential of land bought. Read more.

Although first-time buyers continue to increase, the buy-to-let industry continues to decline due to stamp duty cuts and other tax measures. Buy-to-let mortgages taken out for 2017 were 17.2% lower than the previous year.

Where should I be building my property?

If you are looking to add to your buy-to-let portfolio, then investment search portal Buy2Let has produced a great tool for you. The company have gathered market information from a number of sources including RICS (The Royal Institution of Chartered Surveyors), LSL Property Services, Move with Us and Hamptons International.

With the invaluable market information Buy2Let have collected, they looked forward to 2020. Breaking the information down into UK regions, they focused on the gross rental yields of buy-to-let properties. All of this information has been presented in an interactive map. The tool offers an insight into the highest and lowest rental yields across the country over the next four years.

Southern England is a great place to sell houses and develop property

Developers are almost guaranteed good returns with ever-rising house prices and increasing property demand. Renting houses can be a slightly different story, though.

While rental yields are positive across the South, there are still some prime locations to consider when investing in a buy-to-let.

Apply online for finance from a trusted and experienced property development specialist

Earn more from a Hampshire buy-to-let

London is still the king of rental prices. There is nowhere within the UK that has higher rental fees than the capital.

But, if you are looking to capitalise on your buy-to-let investment, you could be better off looking to the west of the city.

Berkshire and Hampshire’s towns have some of the most reliable transport links to London.

This is why they offer some of the highest yields of rental property within the South of England. Click here for a rental yield map.

Have a look at our case studies for successful developments in these areas.

While this forecast – like any forecast – should only be taken at face value. The fact that figures from a host of respectable property companies have been used to create this tool makes it far more interesting. 

Call 01825 749721 to talk to our expert finance team and find out how we can fund your property development