Wales sparks buy-to-let interest

Permalink: Wales sparks buy-to-let interest
by Gill Montia

Property investment firm, Property for Life, recorded an increase in buy-to-let activity in Wales, during the second half of 2007.

Currently less than 2% of investors in the UK buy-to-let sector hold property in Wales but the recent surge in interest could indicate that the region will follow Scotland by developing buy-to-let “hot-spots”.

David Austin, managing director of Property for Life, comments: “Although Wales currently contributes the smallest proportion of UK buy-to-let investors, the numbers registered are still substantial …. as wages continue to rise we expect to see this proportion increase.”

In recent months, Scotland, the South-East, North-East and South-West of England have also seen growth in property investment interest.

The market has been more subdued in other regions, with the North-West experiencing the largest drop in potential investors, at 22%.

At the same time, the Midlands witnessed a 25% increase in investment property interest, the largest increase in any region.

Mr Austin describes investors’ interest in property as remaining “high across the UK … despite recent uncertainties in the housing market and the economy”.

He believes that: “The high demand for rented property continues on its upward path and shows no signs of slowing as immigrant numbers increase and the younger generation put off buying until slightly later in life.”

However, Mr Austin recommends that investors of whatever level of experience should complete “thorough research on market performance affordability before making a purchase”.