Buy-to-let remains a solid investment opportunity

News at Thorgills | 06/08/2019




Over the last few years there have been several changes to the lettings market across the UK.

With a number of landlords departing the market when initial government changes took place in 2016, the supply of rental property is greatly reduced. Over the same period, demand has risen steadily, meaning that those landlords who remained in the sector were able to achieve higher rents in some locations. Despite these alterations to taxation, stamp duty and bureaucracy, most buy-to-let investors are still finding the market to be lucrative, with stable returns.

With a number of landlords departing the market when initial government changes took place in 2016, the supply of rental property is greatly reduced. Over the same period, demand has risen steadily, meaning that those landlords who remained in the sector were able to achieve higher rents.

Even with the Brexit deadline approaching, now is still an excellent time to get into the buy-to-let sector. In many locations rents are still rising – the Office for National Statistics announced this month that private rents rose 1.3% on an annual basis in May – and it is becoming easier for potential landlords to finance their properties. Most major lenders now offer specific buy-to-let mortgages, and fierce competition between them means that investors can come across extremely attractive rates.

It’s therefore no surprise that a recent survey of more than 5,000 investors found that almost three-quarters of those surveyed considered buy-to-let to be the best, least volatile long-term investment. Indeed, some 83% of buy-to-let investors who were questioned stated that it was unlikely that they would sell their property over the next year, with almost 60% going on to state that they had no intentions of selling for the next five years.

We have also been working hard provide a selection of new products to our landlords, to make it easier and safer for them to let their properties. Our partnership with Experian attracts reliable tenants, we can provide our clients with a rent guarantee service, and more recently we have introduced a comprehensive same-day referencing process.

If you would like to discuss your rental investment options, please feel free to contact us and we can advise you of the best local areas to invest your money in, as well as which property types and audiences are likely to provide you with the best possible rental yield.