Speaking at The Homebuyer Show at the ExCeL centre in Londons Docklands over the weekend, David Lawrenson revealed that he believes there is more money to be made by going bigger, offering tenants more flexibility from their rented property.
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There is currently an elevated demand for houses as the prices climb at a higher rate than flats, making it more difficult for young professionals to get on the property ladder. The widespread instability of UK interest rates means that, instead of taking out a mortgage on a house and risking future repayment problems, young people are looking to rent until the situation becomes more favourable.
Lawrenson comments: It seems that a whole new sector of tenants is coming through, including working families who like the flexibility that renting offers. These are tenants who have chosen to rent because it suits their lifestyle, driving up the demand for buy-to-let houses.
Homes offer landlords a lot more flexibility too, especially in areas with a strong student presence. They can accommodate students, sharers and families alike, meaning that there is less likelihood of the house sitting empty for long periods of time and the landlord paying the penalty.
The average rental yields also differ, with houses offering investors 0.7 per cent more than flats at 6.2 per cent compared to 5.5 per cent.
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