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Alternative Sectors Attractive For Property Investment In 2012
Alternative accommodation types will offer attractive prospects for property investment in 2012, if buyers make well-informed decisions.
Phil Clark, head of property investment at Kames Capital, suggested 2012 could continue to offer some challenging market conditions, but industry factors are combining to make residential property and student accommodation appealing investment prospects.
"One of the key attractions of these alternative sectors is they generally have a high income yield, an ability to track inflation and have low vacancy rates," he explained.
Student accommodation typically presents vacancy rates of less than two per cent, while the south-east is offering the greatest opportunities for buy-to-let investors in the private rented sector, as a lack of mortgage finance reduces owner-occupier levels.
"This is creating rental increases in the order of seven per cent per annum in some locations, coupled with a lack of supply to meet demand," Mr Clark added.
Helen Adams, managing directorof FirstRungNow.com, also recently highlighted how commuter towns, in particular Winchester and St Albans, are ripe for property investment, thanks to their strong transport links to major cities.
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Article date: 12/13/2011 12:00:00 AM