Buying a house to rent out

The strongest growth in property markets can be seen in the north i.e. the Northern Ireland and Scotland where the sales were strong in the past month as per RICS. But the reports also find that rents continue to increase in some of the key regions. Modest growth in demand and the buy to let property taxation led to growth in selling, where the demand for rents grew, and supply fell, which has been a reason for the rise in rents. The data by Reapit states the rental demand grew 13.3 percent in the last year, where the stock was down by 6.9 percent. The reports by the software company found at least one in ten landlords are looking for a sale.

Northmost affordable – buying and renting comparison

The data of Zoopla and Hometrack was analyzed by The Telegraph, and a comparison of renting and buying costs in property markets of UK was released. The data of two-bedroom property with 1.89 percent rate and loan-to-value 85 percent over 25 years was taken.

The north is more affordable and lucrative real estate market, in comparison to, the capital city where the difference between buying and renting average price in Leeds is about 20.1 percent – where rent costs £623 approximately, and buying monthly cost, on an average, is £498. The city continues to grow with the investment of £350 million on development projects and 750 new homes where more than 10,000 people could live and work. A report by IPPR finds 46,000 green jobs will be created in the northern regions by 2030 and 28,000 carbon-based jobs may be lost during this time. The region is also growing in terms of clean energy.

Manchester difference in buying and renting is 28.4 percent, where the renting cost is approx. £725, and buying cost comes to £519. One of the lowest buying costs can be seen in Liverpool where the difference between buying and renting is 40.6 percent – where buying cost, on an average, is £323 and rent is £543. New construction projects are planned for Liverpool where the city is expected to have 2,000 buy new homes and 1,000 new jobs.

There are other growing regions such as Birmingham where the average buying costs are approx. £512 and rent are £663. Rental demand continues to grow in Birmingham property markets as the city is expected to host the commonwealth games in 2022 and this led to the new development projects of at least 3000 homes.

Best cities in terms of quality of life

In terms of, quality of life, job prospects and average salary – Leeds and Edinburg stand out. The cost of commuting is less in these cities as well as in cities like Nottingham if compared to their average salaries. Sunderland has been listed the best where the house prices and rentals are low and the commuting cost is low, whereas, the quality of life is high.

The RICS report on supply pipeline finds almost all regions suffered a decline in the stock, which remained low during this time and the appraisals were also down in comparison to last year.

To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).