Buying an Investment Property: Key Considerations in 2022
For the most part, it appears that the housing market in 2022 will offer much the same as what we saw in 2021, albeit in slightly more modest terms. Virtually all predictions point to the average UK house price hitting new heights yet again in 2022 as the buying boom continues and more people look to put down solid roots. Of course, this is not the full story.
House price growth remains highly uneven across the country, while the general trend is one that, although growing, is doing so much more slowly than in previous years. Perhaps most important is the ongoing boom in rental prices across virtually all major population centres, making a rare window of opportunity for investors. If you are considering adding rental properties to your portfolio in the coming months, keep these key factors in mind.
As with all things real estate, location is everything. This is especially true for those looking to invest in rental properties in the UK. According to this comprehensive guide for choosing the investment that’s the most appropriate for you, property or stocks, rental yields in London now average around 3-4% per annum but can reach 6-8% in high-growth cities in Northern England and Scotland. You should consider carefully where you are most likely to see long-term growth in returns, rather than simply focusing on your local area.
Consider who is renting
When you invest in rental properties, you are a landlord. As a landlord, you can choose your tenants, but it is also up to you to market your property to tenants who are most likely to be interested. This is why doing your research is of paramount importance. In cities such as London and Manchester, young professionals are driving much of the rental growth in high-quality properties. Meanwhile, small families might be more likely to rent in the suburbs of the South East. Always use the resources at your disposal to figure out who is renting in your target area.