Blog
Rosy outlook for buy to let despite Brexit
Thursday, September 29, 2016
With the predicted shock of Brexit so far not having had the anticipated impact on the UK property market, the outlook for buy to let is rosy with the lowest ever interest rates a potential boost for investors. Most UK landlords still see letting property as a part time activity; most own just one property with rent making up less than half of their total income. But evidence suggests that rent is increasingly becoming a significant income stream for part time landlords, with an accompanying trend towards larger portfolios. Between 2010 and 2016, those managing only one property fell from 78% to 63%, while those with 2-4 properties rose from 17% to 30%.
Demand in the rental sector is still growing and specialist lenders have been increasing the number of buy to let products available. But increasing your buy to let portfolio needs careful consideration in order to maximise returns in both the short and longer term.
Whether you’re considering buy-to-let or expanding your portfolio, it’s worth asking your local ARLA lettings agent for advice. At The Frost Partnership, with experienced sales and lettings staff in every branch, we have extensive knowledge of the local property market, available housing stock and which properties may deliver the best rental return. We can highlight the best areas to invest in regarding rental property supply and demand from suitable tenants, as well as the best property types for the rental market in that area. We’ll advise on potential rental returns, yield calculations, property maintenance and minimising 'void' periods.
To select the best investment properties, firstly make sure the price is right both for current market conditions and your budget. Factor in potential for capital growth which will impact upon long term profit. The 'right' location is important so research school catchments, crime rates, transport and amenities. Investing in a cheaper area may be a false economy if it reduces its appeal to quality tenants. Weigh up maintenance issues to minimise costly remedies before you can let the property. Choose properties that are ready to let, have broad appeal with neutral decor, modern fittings, some outdoor space and ideally parking. Other factors to consider are whether it’s a freehold or leasehold property and what improvements are necessary to comply with current legislation.
With 15 linked local offices across Buckinghamshire, Berkshire and Middlesex, we’ll find you the right property as well as providing professional lettings advice. We have a waiting list of quality tenants looking for a suitable property, so if you are looking to let please call your local Frost office for more information.
