Recent findings collected from the Halifax have indentified that UK house prices increased by 1.2% in October 2011 with the average home in the UK standing at around £163,311.
While the increase shows that the UK housing market has "proved resilient" in recent months, those entering the property market, particularly first time buyers will be less likely to afford homes in the UK, forcing many to rent instead.
Almost 4 million properties (2010) are in the Private Rented Sector providing homes for 1 in 6 households and, as demand for rented property continues to grow with the agency network Countrywide highlighting that rental properties now take an average of just 12.7 days to be let, with an average of 5 prospective tenants competing for each property, rental rates are rapidly increasing reaching record highs of £718 a month (LSL Property Services, Sept 2011).
Ray Withers, Director of Buy-to-Let experts, Property Frontiers, comments:
"With demand outstripping supply in the Buy-to-Let market, those with enough capital to invest in the growing Buy-to-Let arena are benefitting from some of the highest monthly returns on record.
"Big rental returns from UK property have alerted overseas investors to the UK, attracted not only to a solid market from which to reap weighty returns, but also a safe and reliable place to invest."
In terms of location, the North West of England has been pinpointed as offering some of the best opportunities for investment within the UK seeing a 20% rise in rental rates this year alone due to the unprecedented demand for rental accommodation.
In the city of Liverpool, demand is fast outstripping supply due to the reduction in home ownership and the number of new homes being built (well below the Government target of 250,000 pa).
This has led to an increase in landlords purchasing apartments in Liverpool at below market values in order to capitalise on the growing Buy-to-Let market.
Meanwhile, demand for accommodation in and around the city centre also continues to rise as more students and young professionals enter the city with one residential lettings agency reporting that rental levels are now 10% higher than last year.
