The Industry in a Nutshell

350,000 ‘Homeless’ by 2020

Rightmove has released figures stating that a lack of housing will result in 350,000 households being excluded from the housing market by 2020.

Those on low and middle-incomes will be affected the worst, as rents and house prices will keep going up. Households in London and the South East are particularly at risk: 26,000 households in London and 11,500 in the South East are already being priced out a year.

Worryingly, the data does not include right-to-buy property and the sale of council homes, which could actually impact house prices more severely than Rightmove have predicted.

And Only a Quarter Will Own a Home by 2025

By 2025 only 26pc of ‘generation rent’ (20-39yr olds) will own their own home.

PwC pointed out that 38pc had bought a house in 2013.

Meanwhile, 59pc of generation rent will be in private rental accommodation, up from 45pc in 2013.

The expected shift rings true – houses are getting far too expensive and only those earning well over the national average salary can realistically afford to buy a house. A typical required income would be £50,000 to fund a purchase.

Source: PwC

Buy-to-Let Mortgage Rates Plunge Again

Rental properties are in high demand. Huge demand, in fact. Rents are going up because supply is going down.

As such, lenders are climbing over each other to offer the best rates to investors. Landlord loans have fallen significantly in the past five years, from a typical 5.23pc two-year fixed term in 2010, to 3.26pc.

Five-year fixed rates have also fallen from 6.12pc to 4.06pc in the same period.*

Landlord lending was up 7pc in September, and is up 36pc year on year, according to the Council of Mortgage Lenders data.**

However, interest rates are likely to increase next year, which should bring an end to the low-cost deals.

Source: http://www.express.co.uk/finance/personalfinance/619761/Buy-To-Let-mortgage-rates-plunge-lenders-enter-loan-war

*moneyfacts

** CML

Buy-to-Luton

Luton has seen its rent increase more than anywhere in the UK this year, besides London.

Rents in Luton have risen by 10.4% this year, to an average of £722pcm. The average across the UK (excluding London) has been 3%.

Landlords could benefit from buy-to-let investments in the area as renters who struggle to meet the demands of the capital move north to commute.

Other areas around the outskirts of London have also registered big increases in rent, including Swindon and Southend on Sea (both 9.7%).

We have recently published a set of reports categorising the best buy-to-let investment locations in the UK. Download them here for an insight into where you could invest next.

Source: This is Money