Residential Market Commentary
Investment in the residential property sector has increased dramatically in recent years, from financial institutions, portfolio landlords and individual investors.
There are several good reasons why this has occurred…
- In addition to providing an income stream to the investor, the buoyancy of the residential sales market has increased investors confidence and expected capital growth.
- The expansion of financial products such as buy-to-let mortgages, has opened up the availability of finance and the opportunity to invest to a much wider audience.
- The relatively poor performance of alternative investments has made residential property more attractive.
- Landlords are attracted by the additional protection afforded to them by legislation designed to boost both the volume and quality of the private rented sector.
- The development of insurance products designed to protect landlords has allowed the investor to adopt a different view point to the traditional yields demanded of residential property.