Expats are increasingly interested in purchasing UK investment properties due to the safe and highly regulated market. Through our partnership with property development companies, we are able to assist our clients in acquiring;

• New homes for multiple occupants can be purchased outright.
• Student housing, for example, that is fully managed
• We source properties and mortgages for clients, taking the stress out of finding the perfect house.

Over the next five years, the rental market is expected to grow by over one million households. The combination of low interest rates and economic recovery is leading to a strong expansion of the rental market, and with house price inflation now outpacing income growth, young professionals are finding it more difficult to get on the property ladder.

In 2013 and 2014, 4.4 million UK households rented privately. Of those, 48% were aged 25-34. Over the past 10 years, the proportion of 25-34-year-olds living in the private rented sector (PRS) has more than doubled. Due to a lack of supply, rental rates are increasing, and the Private Rented Sector and branded operators are leading the way. 

Tenants working with HG Premier Lettings will receive a clean, clear and professional "landlord" who can handle everything from a single point of contact. It is simple yet scalable, saving both tenants and owners money.

In 1996, the first buy-to-let mortgages in the UK were launched, igniting a boom that has continued for the past 25 years. Those who have done this have found great success. Based on capital growth and rental income over an average nine-year ownership period, Hamptons estimates the average landlord in the UK made a total profit of £76,820 in 2020.

So what is buy-to-let and how can you get involved?

UK buy-to-let - the basics

Buy-to-let means buying a property that you plan to rent out to one or more individuals in order to make a profit. The profit can be from the monthly rent, the capital gained during the period of ownership or (ideally) both.

Within the last 25 years, buy-to-let has gone from being a specialist investment model for the wealthy to a mainstream method of generating income. Many people find that buy-to-let is an easy way to earn additional income on top of their day jobs. For others, it is their full-time occupation. For some, buy-to-let is an investment in their future, providing an alternative to a pension as a means of funding their retirement.

The major boom years for buy-to-let were 2005 to 2007. It was then that buy-to-let became a mainstream investment activity.

What is the new rental market in the UK? 

The level of owner occupation in the UK (that is, the number of people who actually own the home they live in), has continued to remain historically low. In 2019/20, the English Housing Survey showed that 65% of the UK’s households were owner occupied, 17% were social rented and 19% were privately rented.

The increase in renting in the UK has impacted significantly on younger people and, in a recent shift, is starting to be seen in older age groups as well. 

The latest English Housing Survey showed that 42% of those aged 25 to 34 were renting from private landlords, with owner occupier levels for this age group falling from 47% to 41% in the last decade.

For older groups, renting is becoming a more popular option. Compared to ten years ago, there’s been a 47% increase in the number of 35-44 year olds who rent and a 56% increase in 45-54 year olds.

This demographic shift has led to a huge diversification in the needs and desires of modern renters. 

Modern tenants have a broad range of tastes and preferences, forcing buy-to-let landlords to up their game when it comes the properties they are offering. 

Young professional renters, still by far the largest rental market, have clear aims in sight when it comes to the homes they live in. Properties must:

• Be centrally located
• Have excellent transport links
• Offer a superior living environment
• Provide access to essential local amenities (supermarket, cashpoint, restaurants, etc.)
• Provide added value (like a gym, off-street parking or a concierge service)

The UK is a large market , so where should you look at buying?  

Opt for a thriving city

When it comes to economic credentials, the UK has a number of notable cities. The south of the country is dominated by London, but the centre and north of the country offer a wealth of excellent buy-to-let opportunities. 

When it comes to attracting a young, talented workforce, cities like Liverpool, Birmingham, and Manchester are leading the way - and it is exactly that group of professionals who are seeking out premium rental properties. Due to their exclusion from the housing market, they are utilising the rental market to their advantage.

Think local

Your city is familiar to you and you know roughly where your target tenants prefer to live. The next step is to narrow down your area even further by taking into account liveability. What are the local amenities like supermarkets, restaurants, decent pubs, and play parks? The centre of the city is a hotbed of activity, so just a few hundred metres can have a significant impact on your potential returns.

Understand your audience

Even when you've narrowed it down to a specific city, you'll still need to do your research. Who is your target tenant? Young entrepreneurs, wealthy students or business families? What do each of these groups typically rent in the city, and what are they willing to pay? You can earn significantly more money by answering these questions than by choosing a buy-to-let property.

Consult the professionals

A majority of investors will lose interest and time halfway through stage two of the above points, which is fine. There's a reason professional, specialist buy-to-let investment companies like Hoxton Property exist - to handle the vast amount of information required to find the perfect buy-to-let property, perform thorough due diligence and then present you with the most suitable options.