The British residential market is undergoing rapid transformation. London, once the crown jewel in the rental sector, is pushing tenants out to other, more affordable areas of the country. This is big news for buy-to-let (BTL) landlords. If you’re looking to invest, now is the perfect time to do so.
Let’s first map out the state of the UK rental sector, and how it’s currently ascending in value, before we get down to how you can finance a BTL purchase as an expat or foreign national.
Winners and losers by region
The headline trend is that London is losing its lustre for British renters. Average rates for 2017 were pegged at £1,524, a 0.4% month-on-month decrease. The South East in general has been experiencing similar reductions: rents were a full 1% lower in December last year compared to the same time in 2016, and fell incrementally on a monthly basis.
Yet as people move elsewhere to seek good employment, affordable lifestyles and better amenities for their cash, other regions are seeing healthy developments in rental yields. The East of England has emerged as a hotspot – a 3.3% rise was recorded for 2017 as a whole, putting rental prices in competition with the capital. Homes in the North East provided a 5% increase, whilst Wales performed admirably too, boasting a 4.4% rise over December. The North West isn’t falling behind either: yields topped 4.8% in the same period.
These regions are seeing a boom in rental profits as they become the alternative to South East living, bringing the price of rental accommodation to a closer balance across the UK in 2018. Investors should move quickly to capitalise on the uptrend, especially as new properties come on-stream over the next 12 months.
Financing a BTL investment
Taking out a BTL mortgage is a popular way for expat and overseas investors to get a foothold in the UK property market. However, if you already have a property or portfolio of properties in Great Britain, it may be worth looking at re-mortgaging. Capital raising mortgages can release extra funds for a down-payment on another property.
Liquid Expat Mortgages make it easier to navigate your finance options if you’re an expat or foreign national looking to buy UK property. We can even introduce you to developments that will deliver the best returns from your investment.
With a financial expert like us to guide your decision-making, there’s a strong chance you will benefit from growth in the UK private rental sector. Contact our specialist advisers for more information on financing a BTL purchase.