The UK buy-to-let market is booming in 2016 and shows no signs of slowing down. Landlords are making the most of higher rents and improved buy-to-let mortgage deals. With first-time buyers finding it increasingly difficult to get on the property ladder, rental rates are expected to rise faster than property prices due to tenant demand and a short supply of affordable housing. A situation dubbed by many observers as “generation rent”.
In areas such as London where tenancy demand is on the increase, many landlords are raising their rental yields whilst simultaneously wetting the appetite of financial institutions. According to the Council of Mortgage Lenders (CML), the first quarter of 2013 saw the total buy-to-let lending value reach a staggering £4.2bn across 33,500 loans. By the beginning of February it accounted for 13.4% of total mortgage lending in the United Kingdom, up from 13% in the previous quarter.
London is becoming an ever-increasing buy-to-let hotspot for landlords. According to the UK’s largest building society, property prices in the capital have leapt by more than 25.8% between the third quarter of 2013 and the same period this year, forcing more and more aspirational first-time-buyers into tenancy agreements.
The Silicon Valley startup Airbnb, founded in 2008, that lets people list their spare rooms or entire homes for short term lets via the airbnb online portal has allowed landlords world-wide to cash in on a new digital revolution that is fast becoming the bane of the hotel industry, and this hasn’t gone amiss with savvy London property investors.
The Guardian analysed data from more than 13,000 Airbnb listings in London and found that 6,600 are leasing out entire homes at inflated short term rental prices rather than spare rooms. Something a new startup property investment group has decided to explore. Mr Ahmad Al Ali, founder and director of Venice Group’s property management and Investment Company has seen his business thrive since receiving their second round of funding in 2013. Venice group have invested heavily into London’s luxury residential and commercial developments and they are now reaping the rewards through ongoing property price increases and a successful long and short-term (airbnb) property rental strategy.
Concerns have been raised though by experts who are concerned that Airbnb is making buy-to-let so attractive that the London property market could become an intangible dream from those on low-to-medium incomes who are desperate to get on the property ladder. Issues the UK government has started to address with their shared ownership scheme that has been designed to assist those on modest incomes to buy a part-share in numerous help-to-buy developments that are becoming more available around the city and surrounding suburbs.
Crowdfunding has become an increasingly popular vehicle for those who are lacking sufficient liquidity to embark on opportunities that typically challenge their financial constraints. There has been a recent surge in activity in this market with companies such as Property Partner, Property Moose and Crowd2let all competing to provide a solution that meets the criteria of a Crowdfunding model.
Venice Group have created an investment platform that is targeted at helping new and experienced real estate investors embrace the Crowdfunding model in a way that is both accessible and affordable.
Investors can invest in prime real estate from as little as £500 and mitigate their risk over several portfolios to increase their leverage and ROI. Investors may find this an exciting opportunity to invest into markets that may otherwise have been beyond reach.
To read more about Venice Group and their offering, you can visit: http://venicegroup.org
About Venice Group
Venice Group Property Fund was initially founded by a collective circle of highly successful property investment professionals that is targeted towards providing a financial vehicle connecting investors of all sizes who are looking to increase and enhance the profitability of diversified real estate portfolios whilst decreasing exposure to risk.
Name: Majed Yabroudi