The potential for capital growth is just one of the many reasons why property investors have been buying homes in the UK. The UK property market is slowly recovering and house prices are finally on the up after several years of stagnation.
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As a result, many landlords are seeing the potential of investing in bricks and mortar instead of wasting time depositing money into a high street savings and investment vehicles.
And who can blame them? According to figures released by property advisor, Savills, and published in the Financial Times, thanks to rising house prices landlords have made £177 billion in capital growth in the last five years. This is great news for landlords, but not so great for first time buyers, who are still finding it difficult to get on the property ladder.
Winner Takes it All “The benefit of recent house price growth has become increasingly concentrated in the hands of private investors,” says Lucian Cook from Savills. “In a housing market that is expensive, relative to people’s income, it is difficult to see how this will change, particularly given increased mortgage regulation.”
Rental Market is Undersupplied The private rental sector has grown by 57% and the value of rental homes in the UK now tops £1 trillion for the first time.