Young Index (Q1 2009) Buy-to-Let Investors Look to Increase Their Portfolios

Latest Young Index results from Young Group show the beginnings of a rising trend; buy-to-let investors appear to be readying themselves for a return to the market as they believe property prices will stabilise and rise during the next 12 months.

Results from the Q1 2009 survey of investor market sentiment show that increasing numbers of residential property investors are considering purchasing additional UK properties within the next 12 months.

London remains the preferred location for investors; 40% are considering buying additional property in the capital – up from 33% in the previous quarter. The trend is not only confined to London, with 24% of investors considering adding UK assets outside of the capital to their portfolios – more than double that of the previous quarter.

The outlook for property prices shows a similar trend, with investors becoming increasingly positive; increasing numbers predict that prices will stabilise and/or rise over the next twelve months.

49% of investors believe that London prices will be at current levels or higher by this time next year (up from a low of 36% in Q4 2008) and 24% expect the same to be true of UK property outside London (up from 10% in the previous quarter).

Young Index: Summary Results for Q1 2009

• 99% of investors intend to hold their residential property investments for the next 12 months. 35% intend to hold their assets for at least 10 years, 28% of buy-to-let investors aim to keep their property investments for the next 15 years or more and 21% for more than 20 years.

• On average, residential property investors expect to hold their investment assets for the next 11 years.

• 40% of investors are considering purchasing additional residential property assets within London during the next 12 months, compared to 23% who are looking at opportunities in the UK outside of the capital.

• The outlook for London property prices is more than twice as strong as for the rest of the UK. 49% of investors believe that London prices will be at current levels or higher by this time next year (up from 36% in Q4 2008) and 24% expect the same to be true of UK property outside London.

• 86% of active UK residential property investors report positive monthly cashflow.

• 60% of respondents expect the Bank of England base rate to have risen above the current level of 0.5% by this time next year, standing at an average of just over 1.0%.

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About Young Index

Young Index is a quarterly gauge of market sentiment within the buy-to-let sector, polling Young Group’s client base of around 500 active investors who hold UK investment property.

About Young Group

Young Group specialises in providing Property Portfolio Management services to private and institutional investors, offering asset management, acquisition and disposal off residential property investments in London.

At a Glance:
• 255: The number of apartments that Young Group clients have successfully completed on in 2008
• 67%: The percentage of new business generated through referral and by repeat investors
• £700 million: The value of property that Young Group has transacted since it formed in 2003
• 1,700: The number of apartments that Young Group has transacted since 2003
• 15: The number of developments offered to Young Group’s clients
• 300: The number of assets currently under management by Young London – our lettings business
• £35 million: The value of mortgages written by Young Finance in 2008
• 272: The number of tenants who will sleep soundly in beds provided by Young Furnishing

• 99%: The proportion of investors who will hold their property assets for at least the next 12 months.

Young Group manages the entire investment process from sourcing the opportunities through to financing (Young Finance: www.youngfinance.co.uk), furnishing (Young Furnishing: www.youngfurnishing.co.uk) and letting (Young London: www.younglondon.co.uk). Young Group is the principal in the majority of transactions and also retains a number of units for its own portfolio. As the principal, Young Group does not realise any profits until completion and has transacted in excess of 1,700 apartments, with a retail value of more than £700 million. The majority of our units are bought by clients for their private portfolios. The Group’s portfolio managers liaise with the Young London estate agency team in advance of completion to let investors’ apartments to quality tenants, often through corporate lets.

Young Group clients have access to all available finance products via Young Group’s FSA regulated mortgage desk, Young Finance. Young Finance is an appointed representative of Thinc Assured Network, one of the UK’s largest financial advisory firms and is not tied to any group of lenders, nor does it charge commission or transaction fees.

• Young Group’s iconic Canary Wharf development, The Landmark, has been awarded two Daily Mail Property Awards in the categories of best high rise development and best high rise architecture. The Landmark East Tower rises to a height of 459 ft, making it one of the tallest residential properties in Europe.
• Young Group’s COO, Sylvana Young, was Property Woman of the Year, 2008 for London.
Young London is a finalist in the national Estate Agent and Letting Agent Awards, 2009. The overall winner is announced on 8 April 2009.

Young Group supports NORWOOD and CHILDREN with LEUKAEMIA, two charities particularly close to our heart, donating £50 per property exchange and providing additional support throughout the year. Visit www.younggroup.co.uk to learn more.

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