(1888PressRelease)
August 18, 2007 - Buy-to-let in the UK is alive and well, with renting rather than buying being a more realistic prospect for many Britons. And with the average age of people buying their first home creeping upwards as affordability problems escalate, the demographic of the typical tenant is also changing.
Long gone are the days when landlords' properties were primarily occupied by students or young adults. The growing rental culture - fuelled by issues such as low levels of first-time buyer affordability and inwards migration - means that the demand for property is also changing.
While city apartments continue to offer high levels of returns, buy-to-let investors wanting to diversify their portfolio could do well to consider other types of property in cities and suburbs.
One such type of property that is becoming increasingly popular in the UK is three-storey townhouses, according to one expert. Lisa Shiell, marketing manager for Connells Estate Agents, commented that the layout of such a property makes it a "great choice for families".
She explained that the top floor could be used to give teenagers more space where they could entertain friends or listen to music without disturbing other members of the family who might be watching television in the living room.
"Or alternatively, many couples make the top floor suite their private sanctuary where they can relax and escape from the hustle and bustle of the typical family home," Ms Shiell suggested.
Connells believes the popularity of three-storey townhouses could be ascribed to the fact that when living space is spread out across all levels, it maximises room and privacy for all members of the household.
Property development firm Charles Church has also been singing the praises of the three-storey townhouse. "Townhouse living is fast emerging as the new trend," the company said in a statement, adding that it is a lifestyle you "either love … or hate".
However, it added that what it does offer is flexibility and that it caters for couples as well as families. According to Charles Church, another benefit of living in a townhouse is the fact that the theme of the rooms across the different levels will change from one property to the next. "But then that's the beauty of townhouse living," it added.
So it seems demand for townhouses is picking up, suggesting there is a gap in the market for the buy-to-let investor. And with the outlook for the sector looking healthy for the rest of the year, according to Paragon, now might be a good time to diversify the portfolio to cater for renters looking to enjoy the flexibility townhouse living could offer.
Nigel Terrington of Paragon, commenting on research last month showing buy-to-let investors are confident to expand their portfolios, said: "Not only does buy-to-let generate good returns for investors, but it also performs an invaluable function in providing flexible, affordable housing for a wide variety of tenants."
He concluded the market "remains robust and all the indicators point to further growth in the future".
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