Understanding The Buy-to-Let Investment Market

Investing in your first property may seem like an intense experience, however it doesn’t have to be that way. We’ve covered the basics of understanding the buy-to-let market so you can start earning a return with knowledge in hand.

What is Buy to Let?

Simply put, buy-to-let is the alternative to buy to live, with the intention of your investment to rent the property you own to a tenant, or tenants.

What does the market look like?

Buy-to-let is also the most popular investment in the property sector, with the market compromising of 2.65 million landlords, collectively owning more than £1 trillion in property assets.

With more than £8.5 billion worth of buy to let property purchased by UK landlords in Q1 of 2022, it’s estimated the average UK landlord has eight properties in their portfolio, generating a gross annual rental income of around £61,000 per property [Uswitch UK buy-to-let statistics 2023].

Comparing record highs for property investment in 2022 alongside the UK’s economic forecasts for 2023 onwards, investing in real assets such as property looks to continue to be a steady source of return.  

What Are the Benefits of Buy-to-Let Investment?

Regular and rising rental income.

Renting out property can provide a regular source of income to help boost your lifestyle, savings, and even form part of your retirement plan.

Plus, with the demand for rental properties growing exponentially, the sector made £4.3 billion in 2022 alone, supporting a significant investment case towards buy-to-let.

Capital growth.

Capital growth results in additional value when you come to sell. Rising house prices traditionally benefit your property’s capital value, as well as providing a somewhat safe long-term investment.

Growing demand.

Not only is renting a popular lifestyle trend, it’s also a necessity for many people who can’t afford to buy on the housing market, with the number of potential tenants enquiring now 53% higher according to a Rightmove report in December 2022.

Where to begin?

With the rising demand and a lack of supply in rentals, it’s important to first check the statistics on developing cities in order to find where rent increases will occur based on popularity. For example, in the North, cities such as Manchester now highly developed however its sister city Liverpool is rising in developments towards growing landlord portfolios.

A UK Rental Market Report by Zoopla in December 2022 states the rental inflation in Liverpool to be 10% above it’s 5-year average. Taking this into account plus the government’s investment into developing the city, jobs market, and education sector, Liverpool is currently a hot spot for first time investors.

At Integritas Property Group we’re proud to be developing some of the highest quality and ethical properties in the North-West, where working collaboratively with our investors is what we do best. If property investment interests you, we’d love to connect. Feel free to contact us today using our online contact form and we’ll reply as soon as possible.