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 Half of properties will be second homes by 2026

 

Thursday, August 31, 2006


In three ground breaking speeches at the Property Investor Show (22 – 24 September, ExCeL London), David Lawrenson, of www.lettingfocus.com, will reveal why at least half of all properties in the UK will be second homes or buy-to-let by 2026.

According to Lawrenson, demand in the buy-to-let market will increase due to the following reasons:

  • Housing supply will not keep up with housing demand, especially if there is no change in net inward migration.
  • People will continue to look increasingly to property as a secure investment, because they see the stock market as too volatile, they’ve been failed by the life companies in the endowment scandal and most importantly of all - they don’t trust the government on pensions.
  • As owning a home becomes impossible for those who can’t rely on parents for a leg on to the ladder, they will be forced to rent – thus providing a ready pool of tenants and rising rents.
  • People are increasingly attracted to renting as a lifestyle that fits the hire and fire work culture of today. Renting means you can be flexible and move to another area for work much easier than if you are a home owner. 

Lawrenson comments: “Sixty years ago, well over half of all properties in the UK were privately rented. But the years of post war rent controls took their toll and private letting collapsed as a business. Everything changed in the late 80s when new laws made it easier for landlords to recover possession of a property."

Lawrenson continues: "The proportion of houses in the UK that are rented from private landlords is recovering from a 1980s low of about 9%, but is still only about 11% today. In the long term I think that privately let property will account for a much higher proportion of the housing stock than today. In fact, we could easily see the proportion of property that is either let out or used as second or holiday homes hit 50% of the UK housing stock by 2026.”

Nick Clark, Managing Director of the Property Investor Show, believes strong returns can still be made from the buy-to-let market. He comments: “Buy to let continues to provide landlords with a good income. Yields of around 6% are quite common, and the influx of immigrants, especially from Eastern Europe, is positive news for future demand levels.”

In his speech at the Property Investor Show, Lawrenson will explain why the pattern of UK housing tenure is set to shift massively over the next 20 years and will look at the many banana skins that await the unwary property investor and how they can be avoided. He will also be handing out a limited number of copies of his bestselling book, ‘Successful Property Letting – How to make money in buy-to-let’.

The Property Investor Show will be hitting the ExCeL Centre in London’s Docklands from Friday 22 to Sunday 24 September, and will feature over 250 exhibitors specialising in all areas of property investment both in the UK and abroad. There will also be a comprehensive programme of expert-led seminars covering all aspects of buying, selling, financing and managing your property.  Entry to the show is free of charge, with the majority of seminars costing £5 each.

Further details on the Property Investor Shows, and to register for FREE tickets, visit http://www.propertyinvestor.co.uk

 

 

 
 
     
     
 

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