Immigration helps fuel

UK's buy-to-let property boom

by Charles Kelly

17 April 2007

The UK is the second most profitable country in Europe, after Poland, for buy-to-let investors, with large numbers of immigrants fuelling the boom, according to figures.

Assetz Property Investment Tracker records the buying costs, rental yields, and capital growth for 14 key investment destinations. Poland came out top with a total 165% return on cash investment, followed by the UK with 63%, Bulgaria with 54% and France with 51%.

Bison Management, the nursing recruitment company, has helped thousands of nurses and carers migrate to the UK over the past seven years, all of whom need accommodation.

Recruitment Manager, Cynthia Barker, says that many care home owners have been able to build a buy-to-let business whilst helping their overseas staff find accommodation.

“Some clients turn the ‘accommodation problem’ to their advantage by buying houses and renting them out to their nurses, which works very well for them and the staff.”

“Many of our candidates have also bought properties for their families and are contributing to the UK’s economy.”

According to Assetz, the UK remains a low-risk investment destination, despite recent interest rate rises, thanks to low purchasing costs and the prospect of avoiding management costs through self-management.

Stuart Law, Managing Director of Assetz, comments: “The growing demand for homes, driven by high immigration and the recent expansion of the EU, will continue to drive demand for the buy-to-let market over the next few years.

"As first time buyers are increasingly priced out of the market, demand for rental properties is likely to rise, providing a strong basis for buy-to-let investment.

“The overall shortage of homes is set to drive house prices in the UK up by 8 – 10% in 2007 and 2008, encouraging investors to take a long term view and benefit from strong capital gains, despite historically low yields.”

Immigration Matters reported in March that a million workers have came to the UK in the last three years.

If you should have any questions on working or studying in the UK email Charles Kelly info@immigrationmatters.co.uk.

For immigration updates see: www.immigrationmatters.co.uk 

Want a career in nursing in the USA? See www.nursejobsamerica.com