As a rental property investor, you will be pleased to know that number of people renting houses and apartments in London is increasing every passing day; of course this phenomenon will result in more property investors investing in Rental Property with the aim of getting best rental yields in London.
Reasons behind Rent Property:
Some of the key reasons why people go for renting a property in London rather than going for self-owned apartments or houses are as follows.
- The first reason is that despite of having enough capital to buy a house, people sometimes don’t get their dream homes, they think that what is the use of spending so much money on a house which surely isn’t according to their liking and taste. Secondly number of brand new homes and their construction has also considerably decreased. This estate of affairs result in more renting activities, of course seeing this phenomenon investors invest in rental properties which can provide the best rental yields in London.
- Many people are looking for favorable economic conditions and by favorable economic condition we mean that Mortgage laws and conditions which are suitable and favorable to the customers.
- There is a change of culture as well, previously people in London preferred their own homes, rent was never in their mind, however recently effects of European life style and mind set has affected the people in London. The result of this effect is that for many people especially the younger generation self-owned house is not a priority. This state of affairs has resulted in less people spending their money in buying a house of their own.
Why Investors Invest in London Rental Property:
- Rented accommodation has a strong demand in London, which has already been discussed in the points above. This phenomenon has created the impression that investing in buy-to-let property is a good option.
- There are many properties in London which can result in High rental Yields and return on investment, these properties are situated in some of the best locations where basic amenities and transport facilities are excellent due to which there is an expectation that high rental yields can be achieved.
- The third reason is that trend is tilting towards people investing in rental homes rather than going for self-owned mansions and properties, this phenomenon has also forced the investors to invest in Rental properties.
The above mentioned reasons are some of the core ones which have actually affected the real estate market of London, when people stop buying their own homes, the resulting phenomenon is increase in renting of homes and apartments, this situation has actually boomed the process of rental business in London. Investors are now investing in properties which can result in best rental yields in London.