Purpose-built properties for renting have never been so popular, with people across the country seeking the best opportunities to make the most of their investments.
Knight Knox‘s Tom Cooper has shed light on some lesser-known buy-to-let choices for aspiring landlords in the UK.
“Over 4.4m households in the UK are rented privately, owned by an estimated 438,000 landlords. With average rent coming in at just over £1,200 a month and yields averaging around 4.75 percent, owning a buy-to-let property is an attractive proposition for people looking to invest their money.
“However, there are plenty of different options aside from a typical private landlord portfolio, where a person might buy one or more houses and rent them on the private market.
“If you’re thinking about getting into buy-to-let or are considering growing your portfolio, it’s worth considering different types of property – especially if you don’t want to be a hands-on landlord or don’t have the time to manage a property yourself.”
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Assisted living properties
The burgeoning field of assisted living is a key option for those contemplating property investments.
Tailored to individuals requiring support, such as older adults, those with learning or mental health disabilities, these properties, often warden-controlled, prioritise safety and mobility. With high demand, these investments offer a secure option.
As vulnerable residents are placed by local authorities, they become stakeholders, ensuring full rent payment responsibility.
Purpose-built student accommodation
With over 2.1 million students in the UK, the demand for rented accommodation near campuses is surging. Purpose-built student flats are gaining popularity due to the increasing preference for higher-quality living spaces. The private rental sector is witnessing a shift towards these purpose-built flats, equipped with modern amenities like en-suite bathrooms, fully fitted kitchens, and spacious bedrooms.
During periods of economic uncertainty, such as the present, a growing number of individuals return to higher education, contributing to the rising demand for student housing.
Investing in purpose-built student accommodation offers the advantage of nearly guaranteed returns, reaching approximately 8 percent net return on investment.
This stands out compared to private residential lettings, which typically yield a net return between 5 percent and 6 percent, making student accommodation an appealing alternative.
Holiday lodges
The appeal of holiday lodge rentals lies in their relatively short terms, typically around five years, ensuring your funds aren’t tied up for an extended period.
If you have a sum of money to invest and don’t require immediate access for the next five years, investing in purpose-built holiday lodges becomes an excellent option.
With an annual rental yield income, you also have the option to sell your unit at the end of the term.
Holiday lodges, ranging from £115,000 to £300,000 or more, present an attractive choice for those with a larger investment capital.
