Finance firm encourages investing in buy-to-lets in Wales amid housing crisis
A finance firm is encouraging investing in buy-to-let property in Wales, amid the housing crisis.
Norton Finance, has shared research which it says shows UK’s best national parks to invest in, while locals are forced out of their own communities in rural and west Wales because they cannot afford to get on the housing ladder.
According to the firm, which claims that the demand for ‘staycations’ is booming, Snowdonia is the best national park to invest in, while the Brecon Beacons came in third and the Pembrokeshire Coast came in fourth.
The study looked at average monthly rental, gross rental yield and Google search volumes to find the best areas to invest in.
It says that the average property in Snowdonia costs ‘just’ £203,320 and has a potential gross yearly rental yield of 20.46%. It adds that the average weekly rental price is £800.
In response to the study, the Senedd Member for Dwyfor Meirionnydd, Mabon ap Gwynfor, has called on the Welsh Government to take “urgent action before this crisis becomes irreversible.”
He told Nation.Cymru said: “The Labour Government in Cardiff has stood by and watched as our communities are engulfed by the housing crisis.
“Snowdonia is now seen as a property portfolio’s paradise. Our communities need urgent government action before this crisis becomes irreversible for many communities.
“Plaid Cymru demands direct interventions to mitigate the housing crisis, including trebling the Land Transaction tax, changing planning laws to allow councils to impose a cap on the number of second homes, and closing the loophole that allows second homeowners to register their property as a “business” to avoid paying the council tax premium.
“Nearly half of the housing stock in my constituency of Dwyfor Meirionnydd were sold as second homes last year. Consultations, trials and pilot schemes are not going to be enough and will be too late. What our communities need is action – and fast.”
Norton Finance suggests that people invest in property in the Brecon Beacons National Park, which is home to Pen Y Fan mountain situated, adding that this makes Wales a ‘shrewd’ choice for investors.
There it puts the average property price at £247,401, the average weekly rental price at £961, and the gross yearly rental yield at 20.20%.
It also claimed that for buy-to-let investors “looking to get their foot in the door”, the Pembrokeshire Coast offers the highest yield on rental property, at 35.36%. The study puts the average property price at £217,923.