Stats, more stats & encouraging news for Birmingham!
Recently the Royal Institution of Chartered Surveyors revised upwards its prediction for yields for residential landlords. It predicts that typical gross yields across the UK will rise from 5.16% to 5.19% . This is before the costs that landlords pay, being the service charge, ground rent and maintenance. At the same time the Centre for Economics and Business Research has reported that mortgage payments could take a larger share of household income as price growth outstrips household incomes over the next five years.
Another body The Intermediary Mortgage Lenders Association has reported that they expect to see over half of Britain’s homes to be rented by 2032. Under 35s accounted for only 18% of home buyers last year with the same group renting in the market rising from 31% to 45%.
The population of Birmingham with its younger age structure compared to England as a whole has higher proportion of the population being under the age of 34. For Buy to Let investors looking at Birmingham with this young demographic of working people this is good news. The desire for City Living also amongst this audience is also high. Therefore those landlords with well located properties can continue to benefit from high levels of demand from tenants seeking accommodation within walking distance of their work places.
Ollie Sills of Maguire Jackson recommended mortgage brokers London & Country reported that ‘Demand from Buy to Let investors remains strong& mortgage rates are extremely competitive. With interest rates only likely to go up, the majority of landlords are now fixing their mortgage rate to protect against rising mortgage costs.
Birmingham currently has higher than average yields for landlords & for this reason combined with the anticipated growth of letting income and capital prices rises we expect to see a very busy market through this summer and into the autumn.
Advice as ever is recommended.