Key among the many variables that investors should consider before purchasing a buy-to-let property is the rental value forecast for the area in which they are investing. Due partly to the factors outlined above, current forecasts place UK rental growth in a very healthy position.
According to Savills, UK rental values are set to rise by 6.3% this year alone, before increasing by a further 18.3% by 2027.
This is highly promising for investors who are hoping to make sizeable returns through rental income in the immediate term. More importantly, these rental valuations will be assured for buy-to-let properties for sale with tenants, as they are completed and occupiers are already paying rent.
In terms of capitalising on a thriving rental market and generating an immediate passive income stream, this is a major benefit of investing in tenanted property for sale over off-plan residential property. The average UK rent is currently sitting at £1,172 per month, with average rental yields above 5%.
As an investor, however, it’s also important to remember that rental markets are definitely not created equal, and there are some areas in the UK that generate higher rental yields than others.
Take the North West for example, where property values are expected to rise well above the UK average by 11.7% between now and 2027.
Along with increasing property prices, rental values in key investment areas like Liverpool and Greater Manchester are set to skyrocket in the coming years as these thriving cities become increasingly popular alternatives to London.
Additionally, these growing markets already comprise a host of fully tenanted buy-to-let properties boasting prime city centre postcodes and rental yields in excess of 6% that present unrivalled investment opportunities.
Although they are set to rise in the coming years, average property prices in the North West are currently below market value, making now a prime time to explore tenanted properties for sale in this growing region.
Areas of Growth
Take the North West as an example, where property values are expected to rise well above the UK average by 11.7% between now and 2027. Along with increasing property prices, rental values in key investment areas like Liverpool and Greater Manchester are set to skyrocket in the coming years as these thriving cities become increasingly popular alternatives to London.
Additionally, these growing markets already host a range of fully completed and tenanted buy-to-let properties boasting prime city centre postcodes and rental yields in excess of 6% that present unrivalled investment opportunities.
Although they are set to rise in the coming years, average property prices in the North West are currently below market value, making now a prime time to explore tenanted properties for sale in this growing region.