The ONS House Price Index for October 2014 found that there has been a Rise in Buy-To-Let- House prices by 10.4% in 2014. House prices are continuing to increase strongly in the UK making it more difficult for first time buyers to purchase property.
In October the average house price paid by first time buyers was 12% higher than the previous year, suggesting that many will struggle to buy their first home, despite new measures being made to introduce new finance options.
Figures from the ONS Index also show that house prices in England are 12.6% higher than the peak reached in January 2008, before the economic downturn.
The Mistoria Group Welcomes these findings
The Mistoria Group Research has shown that the rising house prices are leading first time buyers towards rental property, a more affordable option for many. paying monthly rent is a much easier way of moving away from home without the high costs associated with purchasing a property.
It isn’t just soaring property prices that are putting potential buyers off purchasing. Buying a property is a huge financial commitment, making mortgage payments are expensive and are subject to changes in interest rates whereas monthly rental costs cannot change once they have been agreed at the beginning of tenancy.
Rental property is also much more flexible, many young professionals wish to move for work opportunities would find this a difficult process if they owned their own home. Selling the property through an estate agent does not only take a long time but is also costly. Rental property however does not require any of these transactions and is much easier to move away from.
The buy-to-let market has seen an increase in recent years. The popularity of rental property has lead to a rental market boom, the Buy-to-Let Britain Report has found that in the second quarter of 2015 the total is predicted to reach £1 trillion.
Mistoria are armchair property investment specialists, offering investments and high yielding Buy-To-Lets in the North of England specialising in the student/HMOs. For more information on our current available investments and the services we offer email us at email@example.com or call us on 0800 500 3015.