Property developers and other professionals in the sector should consider how they can better target the buy to let market to yield greater profits, research suggests. While traditionally families in the UK have aspired to own their property, it seems that an increasing number are content with renting.
According to a survey for insurer Direct Line for Business, 70% of UK renters have no plans to purchase property in the future. Whether the shift in attitudes is due to more families enjoying the flexibility that leasing provides or they feel priced out of the market due to rapid price hikes, it does present an investment opportunity. The sentiment of renters suggests that the UK could be moving towards a housing market that’s similar to Germany’s, where a greater portion of the population chooses to rent.
As you would expect, affordability was a key issue for renters when deciding whether or not they should purchase their own home. But other factors were taken into consideration too, including not being tied to one area and the potential costs that come with maintaining a property, which over a fifth would rather leave to landlords to deal with. The changing attitude to renting means it could be the perfect time to invest in starting or expanding a property portfolio, while developers should focus on homes that will appeal to landlords.
Despite the opportunities to see growth within the buy to let market, it can be difficult to access the finance that’s needed to grow your portfolio enough to take advantage of the renting market. If your finance is tied up in property and liquidity is a challenge, GIC Capital have some credit solutions that can provide exactly what you need.
Our portfolio builder option, for example, can provide up to 100% of the loan-to-value of the purchase price or open market value so you can invest in the projects you’ve been researching, whether it’s a new build in an up and coming area or a converted flat that will appeal to millennials. The capital allows you to use the value of your other properties to unlock the cash you need to invest in another. It’s perfect for rapidly growing your portfolio.
Developers with a vision for rental property that will be snapped up can also benefit from our development capital thanks to our network of investors that are looking for the next profitable opportunities.