Miller Homes predicts 2012 will be the ‘year of the investor’
Miller Homes North East has predicted that 2012 will be the ‘year of the investor’ and investor sales are set to rocket, with private landlords returning to the property market for the first time in more than three years.
The housebuilder, which has a portfolio of 12 developments across the region, is expecting a second buy-to-let boom as rental values in many areas reach an historic high and void periods become a thing of the past.
The buzz around property investment can be seen across the North East right now. Not only is Miller Homes seeing this but research by property consultancy CBRE shows that Newcastle features prominently in a list of areas where residential property investors can expect solid returns for their money.
Newcastle – the location of Miller Homes’ Greenvale Park development on Stamfordham Road - came top of the region’s cities, offering investors a gross yield of 5.6 per cent.
The same report also highlighted how the private rented sector has grown over the last decade and now accounts for 70 per cent of occupation.
Steve McElroy, sales director for Miller Homes North East explained: “According to recent data from the LSL Property Services Buy-to-Let Index, the average rent in England and Wales has never been higher. Demand for quality rental properties is continuing to soar and anecdotal evidence suggests there is fierce competition among tenants to secure a home – particularly in some of the region’s prime locations.
“At Miller Homes’ developments across the North East we have begun to see a marked increase in the number of landlords who are looking to capitalise on the current situation, and we expect this upward trend to continue throughout 2012.
“Recent research from specialist buy-to-let lender, Paragon Mortgages, backs this up. Its findings suggest more than 22 per cent of landlords expect to buy additional properties in the New Year, while just eight per cent are considering reducing their stock.”
According to Mr McElroy there are signs that the second buy to let boom will be here to stay. “Today’s first time buyers face many challenges when getting on the property ladder.
“Many believe that they are priced out of the market and face the prospect of spending years saving for a deposit. And while housebuilders including Miller Homes and the government are working hard to make homeownership more accessible, with schemes such as FirstBuy providing support for eligible purchasers, there is still a widespread and often incorrect perception among first time buyers that a home of their own is not achievable in the current climate. As a result, many are turning to renting – not just as a quick fix for a year or two, but as a long term solution.
“Taking the economic situation into consideration and the fact that the UK is experiencing the worst housing shortage since the Second World War, conditions are looking favourable for savvy investors. Low returns on savings and record low interest rates also make property look like an increasingly attractive investment proposition.”
For information on Miller Homes’ developments across the region, visit millerhomes.co.uk.