Real estate investment seller predicts buy to let ren…

The sales manager of a real estate investment company said high house prices, rising interest rates and the wider cost of living crisis would combine to push more potential buyers back to the private rental sector.

Daniel Jackson, sales director of Sequre Property Investment, said that on top of all of this, “mortgages will be harder to come by as lenders exercise caution in the face of higher monthly expenses such as food and oil. energy, which leave less money for mortgage payments.Because of this pressure, we are likely to see an increase in demand for rental properties throughout 2022 and, as our research shows, landlords are increasingly investing in the buy-to-let market.

He continues: “Long-term real estate is a much stronger and more resilient investment than other asset classes, offering better returns than stocks, bonds and gilts, over a ten-year period. Since the start of the pandemic, the stock market has been highly volatile, with the majority of global stock markets suffering losses in the trillions of dollars.

“Traditionally, real estate has been a very good hedge against inflation. During the 1970s, when inflation peaked at around 27%, investors with residential and commercial properties and land profited from inflation, while those with fixed rate investments lost money. at an alarming rate, more than a quarter of their savings each year.

And he says: “Most parts of the UK have seen homeowners’ incomes rise, with better prospects than they have for some time. We have seen average returns of 8.71% on our real estate investments nationwide, in the first quarter of 2022, offering above-market average returns. »