Friday, November 25, 2016

With interest rates set to remain low what other options are out there for investors?



Putting your money in bricks and mortar has long been a preferred option for many people of Melton Mowbray.   It is often part of the retirement plan or a way of seeing some income from your savings.

Over 20 years the capital is going to increase even with the peaks and troughs of the property market, as a long term investment there is little out there that can match it!

Belvoir has just released the rental index for Q3 2016, a look at the monthly rental price movements.  The report analyses the ups and downs of the rental market, not just at a national level, but breaking down monthly rental averages in London, the rest of England, Wales and Scotland as well as regional level.

In the East Midlands the average rent for the third quarter of this year is £625 which is a 3.75%  increase on quarter 3 2015.  The quarter 3 2016 average versus the 2015 annual average rent of £593 shows an increase of 5.5%.

As long as there is demand the rental market will continue to grow.   Because of the last governments shift in policy away from home ownership, also the lack of houses being built, across the UK there is now an urgent need for more housing for students, migrants and families looking for three bed properties and four to five bedroom homes.

During 2015 and 2016, it is the first time since the recession where wages have increased faster than inflation.   I wonder though how Brexit will affect the cash in people’s pockets; this could cause rents to stabilise.  The returns should still be better than other investments can offer, but investing in the right type of property is essential.

Ensuring that the property is going to appeal a broad range of potential tenants will mean it will let quickly and have minimal void periods.

Know your local market – tenants looking to rent in Melton Mowbray will have a different set of demands from those looking in Leicester City Centre.

Follow my property blog for honest advice on rental returns; we only deal with letting property so it is key for us that you make the right investment. 

No comments:

Post a Comment