It’s a documented fact the capital is set to see its population increasing faster than any other UK region. In fact, according to the Office for National Statistics, there will be a projected 9.54 million people residing in London by 2026 – representing a 9% increase from 2016. It’s also worth noting, the area of Tower Hamlets in East London is set to grow by around 18% in this time, making it the quickest-expanding local authority in England. A total of 330,000 individuals will be living there by 2021. To demonstrate this further, 13% of Britain’s total population lived in the capital just three years ago. And remember – London has 32 busy boroughs aside from the City, so the potential for flat-sharing is certainly on the up.
Looking more closely we can see the two biggest boroughs in London are currently Barnet and Croydon, both carrying populations of around 380,000 – the size of equivalent medium-sized cities. Looking to the West, the smallest borough is Kensington and Chelsea with a population of 160,000. This area has the slowest growth rate in London. With investment property in mind – Tower Hamlets is the current place to be.
Why The Population Boom?
The reason for the population increase certainly isn’t immigrants. It’s actually down to a straightforward increase in the birth rate. Fast forward 17 or 18 years and many of those children born at the time of writing this will be looking at university, a career or essential employment in and around London. Given the rapidly increasing population, it’s clear more forms of modern accommodation will be required. In short, flat-sharing will certainly be trending as never before.
It also means there will be a call for an increase in highly professional landlords and property management services. Of course, with each passing year, we have youngsters coming of age and older people making changes to their lives in high numbers. It’s one reason why investing now in property suitable for flat-sharing is being deemed a very good move, especially with the future in mind.
Good Lending Conditions
The fact reasonably attractive rental yields have combined with what are good buy-to-let lending conditions, means buying property in London has become very appealing to investors. This at a time when there’s still a serious shortage of homes in and around the South East. The capital is very much different to the rest of the UK in terms of housing, simply because there’s a much greater proportion of young people to take into consideration.
A Healthier Housing Market
Many experts are predicting as population rates in London continue t0 grow, more prospective property owners won’t be able to afford a mortgage. This is where buy-to-let will come into its own, in order to also help those who can’t get a foothold on the property ladder. Flat-sharing in effect will be helping to sustain a much healthier housing market here in the UK.
A Positive Approach
By 2018 the number of buy-to-let investors had reached more than 2.5 million in the UK – up an amazing 5% in just a single year, and a record high. Taken on average landlords have 1.8 buy-to-let properties each. This average alone has increased for the fifth year in a row.
As for Brexit, it seems a finalised deal whenever it comes will actually empower the draw of the capital as a must-go-to destination. This will also bring young overseas professionals and students into London. They too will need accommodation with flat-sharing becoming a favoured choice.
We also need to be aware the numbers of flat sharers in London aged between 35 and 54 has risen dramatically in the past few years – more than 300% is a staggering figure. So, it’s not just young professionals’ landlords need to target. Older renters can also be quite discerning in outlook. And with this in mind, modern landlords need to provide top-quality service at all times. This is where a company such as Like-Minded Living can come into its own, providing superb year-round management support and quality assistance.
Excellent Management Support
With a thorough referencing process to hand they can help ensure applicants meet income affordability requirements, and the right to rent in the UK as standard. Well put together one to three-year management contracts, give property owners complete peace of mind. This also means rental income is guaranteed regardless of whether the property is empty or let. Why not check out the possibilities today?
It’s important to make a note of the fact, rising earnings and growing earning potential generally leads to an increase in rental values. And despite Governmental changes in buy-to-let tax relief, a number of other tax relief scenarios are still available. While their remains a serious housing shortage, of course, the buy-to-let market will continue to boom. By employing the help of market management professionals, your chances of a consistently high yield income in London are considerably enhanced.
Points To Consider
On a closing note, it’s worth reminding ourselves London’s population is projected as increasing to more than 600,000 by 2021 – This will bring the total up to 9.3 million, with outer London contributing to 60% of the predicted figure. Doing the maths alone will demonstrate how flat-sharing will play a key role in the accommodation sector for quite some time to come. In effect, this is the perfect time to either become a landlord or to add further to a healthy portfolio.