THE massive growth of inner city living in the last decade is changing the character of tenants who rent properties both in cities and rural areas.
Cities have become the favourite for many young people and students, while couples and young families have increasingly started to join the older retired communities in rural towns and villages. But recession-hit housing stocks are failing to meet high demand in both types of area.
“People are changing their attitudes to home ownership,” says Kieran Donohoe who owns the Solihull office of the country’s leading residential lettings specialist Belvoir.
Kieran’s advice for new buy-to-let investors is to ideally build a mixed portfolio of city and rural properties.
In the city, returns are higher and more immediate.
Prices can be relatively cheap and yields high … making it a great time to invest.
While rents are not going through the roof, they are nevertheless rising.
Look for properties that can be rented to young professionals, couples or students – but not flats or apartments with sometimes uncontrollable service charges.
Beware - city trends can change more rapidly than rural areas and adversely affect a good investment
In the country property is relatively more expensive but there are fewer chances of an investment being damaged by fickle city trends.
Look for well-maintained 2 to 3 bedroom houses, with gardens and parking that are cost-effective to heat.