The UK property market slows down
The UK property market seems to be heading towards the end of what has been a few years of frenzied activity when properties were being sold before the ‘for sale’ sign had been erected, and many were selling for above the asking price due to the high level of demand in a period of relatively low property stock.
During 2022 the UK has faced many challenges including a tough economic climate at a time when the ‘cost of living crisis has become a commonly used expression, and in the latter part of the year changes to government and rapidly increasing mortgage rates have contributed to a subdued approach to house buying.
So, why then is this potentially the ideal time for yacht crew to invest in the UK property market?
To a certain extent, yacht crew are immune to many of the challenges being faced by people in the UK as:
- you do not have regular household bills which are constantly increasing
- you are not being hit by the rising cost of food and fuel
- you do not pay tax so are not affected by any proposed changes by the government
- many yacht crew have a high level of disposable income so are able to save relatively large amounts quickly for a deposit
- whilst the pound is weak your income is worth more in ‘real terms’ if you are paid in dollars or euros
All these factors are affecting many people which is slowing down the demand for property at a time when housing stock is increasing. This scenario of high supply and low demand could provide an ideal opportunity for you to step into the UK buy-to-let investment market and acquire property to rent out at a realistic price with a good yield, which has been difficult in recent years due to the high demand and inflated asking prices.
What are the expectations of the UK property market?
It is strongly expected that demand for a rental properties in the UK will continue to increase in the coming months and potentially years as many people cancel or delay their plans of buying a property due to the combined cost of the mortgage, household bills, and other associated expenditures.
A recent survey carried out by a prominent leader in the buy-to-let lending market suggested a record 65% of landlords reported rising tenant demand during the third quarter of 2022. The lender also said this beats the previous all-time high of 62% of landlords reporting this trend in the first quarter of the year, “marking a consistent and significant rise in tenant demand since the low net increase of 14% was recorded in the second quarter of 2020”.
This trend should result in increased rents and increased yields for landlords and could provide a perfect opportunity for people like yacht crew who have managed to accumulate a good level of savings to use as a deposit and who want to embark on long-term investment in UK buy to let property.
We have written many pieces over the last few years in relation to the availability of mortgages for yacht crew and have obtained insight from our chosen mortgage broker partner, who we have worked successfully with to obtain seafarers’ mortgages for yacht crew like you for many years.
Previous advice and help guides for yacht crew can be found, here.
What do yacht crew think of their experience with our mortgage team?
Ryan (Chief Engineer) – I dealt with Dave, but all the other members of the team were knowledgeable and made a great contribution to the advancement of our cause. The team professionally fulfilled all the mortgage obligations, moreover, they helped me clarify other complexities related to the purchase of the house and took care of all aspects of the case by offering close cooperation with me, and some very problematic solicitors! We have a home thanks to your super team. On a scale of 1 to 5, they are absolutely beyond that!
Monica (Stewardess) – We cannot thank Martyn and his team enough. They are quick to act and found us the best possible mortgage for our circumstances.
Paula (Second chief stewardess) – Martyn and Dave helped me with my first seafarer mortgage. As a seafarer, they helped me with all the paperwork and mortgage-related items for me. I didn’t need to worry about anything as my position can be a bit complex. They fully explained to me the mortgage process every step of the way. Dave really put me at ease when purchasing my first property and I would highly recommend anyone to use them.
For more information on CrewFO’s Property Investment Services for Superyacht Crew, contact email@example.com.