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Boost for landlords as capital appreciation increases returns

Property prices are continuing to rise beyond expectations, with landlords enjoying an uplift in rental return and capital appreciation.

UK Investment Properties

Property prices are continuing to rise beyond expectations, with landlords enjoying an uplift in rental return and capital appreciation.

With their latest research, Savills have estimated that landlords will enjoy a 9.5% increase in capital appreciation for 2014 – 3% higher than their original prediction.


House prices across the UK have increased more than expected, with the company adjusting their five-year forecast from growth of 25.2% to an increase of 25.7%.


The rising value of property has led to increased interest in property investment, with many people now looking at the property sector as an opportunity to make an asset-based investment. The structure of buy-to-let investments means that there is the availability of regular rental return and rental income. Rents in the UK are also on the rise, driven by high demand for rental property, which is in turn pushed by increasing house prices leaving many unable to buy.


This has been highlighted by current trends across the country, as potential home purchasers are selecting to rent properties rather than save for a deposit

.

The report predicts that rental prices will continue to increase, with London, the South East, the East Midlands, and the East of England all rising by 5%. The South West and the North West are expected to increase by 4.5%.

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