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TODAY'S OTHER NEWS

Buy-to-let demand will continue to soar

Demand for buy-to-let is set to soar with each new generation while home ownership will continue to plunge.

Fewer than half of those born in 1990 will own their own home by age 40, according to new data from Savills.

Its latest Residential Property Focus 2015 reveals that 53% of those born in 1960 could look forward to owning their own home by the age of 30, rising to 71% by the age of 40 and 79% by the age of 50.

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Of those born in 1980, just 35% owned their home by age 30, and this is projected to fall to 26% for those born in 1990.

By age 40, most will be in rented accommodation, with just 47% predicted to own their own home.

Jonathan Stephens, managing director of Surrenden Invest, a specialist buy-to-let consultancy, said the figures spell good news for investors.

"Quite simply, falling rates of homeownership mean rising rates of renters, so the growing situation in the UK creates a substantial opportunity for those looking to make their money work for them by investing in residential real estate.

“Of course, alongside this it is important to remember that the area in which you invest is important too – a few miles difference, particularly in major cities like London, Manchester and Liverpool, can have a big impact on yields."

This is particularly true of London properties, he said. House prices are projected to rise by 21.5% in central London and by 18.2% in outer London over the next five years, according to Savills.

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