Residential Guidebook Residential Guide 2017/2018 | Page 6

ADVERTORIAL Why invest in the UK buy-to-let market? T he UK buy-to-let market has been recognised as one of the most lucrative asset classes for many years and has recently attracted many South African investors who are taking advantage of the weak pound following the shock EU referendum result last year. There is no surprise that UK buy-to-let is becoming even more popular, with the Private Rented Sector projected to grow significantly in the years to come. According to Knight Frank, almost one in four households in the UK will be renting privately by the end of 2021 as a result of surging house prices and stagnant salaries across the country. It is further predicted that the total number of rental households in the UK will reach 7.2 million by 2025, with limited supply and spiralling house prices making it increasingly difficult for first time buyers to get on the property ladder. Currently there is an annual shortfall of at least 70,000 new homes in the UK and, with the current levels of