The property market has historically been fuelled from below, with first time buyers paving the way for sellers to move onward and upward.
However, the dramatic rise in property prices over the past decades, followed by mortgage funding difficulties have combined to mean that there has been a decline in the number of first time buyers able to get their foot on the ladder, with their average age having also risen to 37.
Whilst this is clearly unfortunate for young people wishing to buy, it does not mean all out gloom for the property market as a whole, but is simply a reflection of a shift in lifestyles changing the socio-economic shape of the market.
If fewer young people are buying, then more are renting, which has provided a huge buy-to let opportunity for the wise investor.
There are several other factors that support this view. Firstly, according to market researchers Mintel, over the next few years, there will be a predicted shortfall of over half a million properties available to purchase, which will inevitably maintain some degree of pressure on prices. Secondly, the student population is expected to rise by 8%, and there will also be a surge in the number of single households to 1.2 million.
Add to this an increasingly flexible job market, investor awareness of buying opportunities as an alternative to the stock market, and we have the recipe for considerable growth. Managing a property investment is not without its complexities, but we have lots of happy landlords for whom buy to let has been a very sound investment decision.
So what are you waiting for? Why not call your nearest branch for local property investment advice and we’d be happy to talk you through the opportunities.