According to recent property statistics from the Halifax, buy to let landlords
who have invested in flats in the last ten years have enjoyed a substantial
increase on their investment. Since 2009, flats have become an excellent
investment property for landlords, mainly thanks to huge rises in the London
property market. But even if you bought elsewhere, you are still on to a
winner if you own flats rather than larger properties.
Rising Property Prices in the UK
The average cost of a flat in the UK has risen by a whopping 35%. In 2003, the
average price of a flat was £47k. Today the same flat would cost £133k. A
similar increase in prices for terraced properties is also evident from the
prices published by the Halifax. The cost of buying a buy to let terraced
property has gone up by 32% during the same timeframe.
Fluctuations in the Housing Market
According to the Halifax:
“While prices have risen for all property types, there have been a number of
distinct periods of performance in the last ten years. Bungalows and detached
homes fared best during the downturn, as these property types are less popular
with first-time buyers. Since 2009, larger property has under performed flats
and terraces.”
Invest in Property Wisely
It is worth bearing this trend in mind if you are looking to expand your
property portfolio, especially if you are not looking at long-term
investments. Flats and smaller terrace properties are great for young
professionals and student lets whereas larger properties are more suited to
families and executive lets, so think about which sector of the rental market
you are aiming at before you jump in feet first.
