© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
Neil Young, CEO of Young Group, commenting on the latest Young Index figures, points out: “Mark Twain famously said ‘Reports of my death have been greatly exaggerated’; the same can be said of the buy-to-let industry. Young Index data shows that investor sentiment remains extremely healthy, particularly in the capital.
As with any investment asset class, it’s imperative to scrutinise each opportunity carefully and ensure that it is supported by sound fundamentals. In the case of buy-to-let, investors need to ensure that the balance between property supply and demand is in their favour. Young Index figures show that confidence in the London market outstrips the rest of the UK by more than five times, which is a consequence of the continued undersupply of property in the capital and London’s dominant position as the world’s leading centre for global business and finance.”
The picture is the same from a price point of view; 82% of investors believe that property values in London will rise or remain static. This compares to just 37% of investors expecting the price of UK property outside of the capital to rise or remain static.
Commenting generally on the buy-to-let industry, Neil Young explains: “Buy-to-let is a recently coined term for what is essentially one of the most established business practices in the country. People have been renting homes from landlords since the earliest days of property ownership. The practice has taken off in recent years as a result of the development of buy-to-let mortgage products making it easier to access funds. Assured Shorthold Tenancy legislation, introduced under the 1988 Housing Act, has also contributed by bringing an element of clarity and regulation to the process of letting property. However, the principal of buy-to-let itself is not new.
“We always urge investors to take a long-term view and ensure that they are financially able to accommodate any short term fluctuations in market conditions that may occur. The Young Index results clearly show that buy-to-let investors continue to have confidence in the sector.”
With regards to the recent credit crunch, Neil Young concludes: “The world has not come to an end; mortgage funding has become more difficult to come by. The UK’s economic indicators are still positive; inflation is within 0.1% of target, unemployment is low and falling, the growth forecast for 2008 is more than 2%, productivity is up and further cuts in the base rate are forecast. Buy-to-let property is still a solid medium- to long-term investment class, provided that people do their research and look at the facts and fundamentals of investments, without being swayed by marketing spin or doom-mongering press reports.”
Young Index figures for December 2007 show that 91% of investors claim not to be influenced by headline-grabbing media reports.®Å½
For further information about the B2L sector see
www.younggroup.co.uk.
82% of investors believe property values in London will rise or remain static during the next 12 months;
37% of investors believe UK property values outside of London will rise or remain static over the next 12 months;
93% of investors intend to hold their property investments for at least the next 12 months;
54% of investors intend to buy property investments within London within the next 12 months;
91% of investors are not influenced by media reports;
95% of investors expect the base rate to be below 5.75% at the end of 2008;
60% of investors expect the base rate to be between 5.0% and 5.25% at the end of 2008.