The buy-to-let market has been shrinking slightly in the last couple of years, largely because of tax changes (notably the stamp duty hikes), and uncertainty caused by Brexit and the snap election.
This has had a knock-on effect on landlords, with many being more hesitant to invest. However, signs suggest that now is an excellent time to start investing in buy-to-let property for sale – here’s why.
Why You Should be Investing in UK Property
- Falling mortgage rates. Reduced demand has put pressure on buy-to-let mortgage lenders, and now, many are competing fiercely to attract landlords to their deals. This month, the Post Office announced a new rate of just 1.33% (two years, fixed term) – the lowest rate to come to market yet. Deals like this are unlikely to hang around for long, so it’s a wise idea to seize the opportunity while it’s there.
- Rents are starting to rise. According to recent research, rental rates are on the rise again, increasing by an average of £75 a month since January alone. This is welcome news, particularly if you search for investment properties in the right part of the UK, where property prices are still appealingly low.
- Property prices remain reasonable in certain areas. Some cities in the UK are still astoundingly reasonable, especially given the level of demand – from renters and homebuyers alike. For example, many of the northern cities, notably Manchester and Sheffield, have attractively priced properties, whilst offering great rental yields. In Scotland, Glasgow is performing strongly, and in the South, Southampton is emerging as a strong buy-to-let performer.
- There are several appealing options. These days, savvy investors are giving conventional estate agents a wide berth, and exploring other buying options instead. Buying a house at auction is becoming increasingly more popular – thanks largely to the savings on offer (most buyers save around 15% of the usual market value). Likewise, working with a property investment agent can help investors save thousands, and buying an off-plan property is also a viable way to maximise profits.
- Demand continues to grow. Whilst fewer people are choosing to become landlords, renting continues to grow in popularity. Indeed, experts predict that 60% of people living in London will be renting by 2025. This growing demand ensures a steady stream of tenants, which is one of the most vital aspects of developing a successful property portfolio.
Getting the Help of a Property Investment Agent
If you’re interested in investing in property in the UK, it’s worthwhile seeking professional assistance, particularly if you’ve never purchased buy-to-let property for sale before. A property investment agent will be able to assist your purchase – from identifying the ideal property investment opportunities, to securing the sale at an attractive price.
The Buy2Let Shop are a team of expert property investment agents, and we offer a wide range of services, designed to help you develop a lucrative property portfolio. For more information, simply visit The Buy2Let Shop website today.