Holiday Lettings news - UK's buy-to-let sector goes through the roof

UK's buy-to-let sector goes through the roof

Anyone thinking of investing in buy-to-let property in the UK market could well be making a wise decision. New figures indicate that demand for rental property outside of London rose sharply during the first quarter of 2008, spelling good news for landlords, independent property portal Home Move reports.

A slowdown in the property market has led to increased interest in rented accommodation throughout all of the UK's regions, according to figures from letting agents Hamptons International. Overall, the agent saw the number of tenancies rise by an impressive 33 per cent in the first four months of this year, a trend that is being put down to problems currently afflicting the UK property market. Many potential investors are putting off sinking their money into property just yet, either through difficulties in obtaining a mortgage, or simply waiting to see exactly how low house prices will fall before taking the plunge themselves.

The emerging trend of splashing out on rent rather than a mortgage is further backed up by Hampton's data. According to the agent, over three quarters of their current tenancies are in the process of being renewed as well as the surge in interest from new tenants.

The buy-to-let market is a lucrative one and predictions that amateur landlords would abandon their activities have not been realised. Figures from Hamptons show that London continues to be the UK's leading city for landlords in terms of yield, but it is not the only hotspot; Brighton is worth investing in, with a yield of 4.32 per cent, as well as Hove and St Albans, which boast yields of 4.22 per cent and 4.02 per cent respectively.

However, it's not all doom and gloom and anyone trying to sell their property can take heart, as figures from property investment firm Assetz indicate that despite a small blip in April, house prices are in fact on the up and that overall, they have risen since the beginning of the year.

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