Property investments are said to rise in the coming months as a result of the pension changes in April.
In light of that student property investment consultancy Emerging Property wanted to know what people across the country think about different types of investments.
The findings from a poll of 2,000 UK adults show that 36 per cent of people believe that becoming a buy-to-let landlord is “extremely risky”.
The most concerning things in being a landlord, according to the survey respondents are:
- Making repairs to toilets in the property – 63 per cent
- Tenants damaging the property – 63 per cent
- Risking losing money when the property is vacant – 62 per cent
Although the poll results show a considerable amount of concern about buy-to-let investments, there currently are 1.6 million buy-to-let landlords in the UK. The buy-to-let market has been growing significantly over the past two years, with the number of landlords rising by 120,000 in 2014 alone.
On a regional basis, confidence in property investments is higher in the South West and lower in the North East. The research found that 39 per cent of Londoners and 38 per cent of people in the West Midlands believe the property market will continue to grow. The proportion of optimists drops to 21 per cent in the North East and 26 per cent in the East Midlands.
According to Emerging Property, a safer and more appealing alternative to buy-to-let could be the investment in purpose built student accommodation (PBSA).
James Harrington, business development manager at Emerging Property, explains:
“Purpose built student accommodation is designed to mitigate the key concerns expressed by investors in this survey. Not only are they operating within a market that delivers far greater yields than traditional buy-to-lets, but also, as the result of onsite property management and guaranteed returns, provide a hassle-free passive income, with zero costs and complete peace of mind.”
“In 2014, we witnessed record university intake levels in the UK, with numbers exceeding half a million for the first time. With existing supply gaps, this is resulting in high demand and positive rental growth, which ultimately leads to improved yields and enhanced security. This trend is set to continue, with legislation, both at the national and local level, encouraging increased university intake and exacerbating demand for purpose built accommodation.”
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