With house prices becoming more affordable, better mortgage rates available and continuing low interest rates on savings, many investors are now thinking about buy-to-let as an attractive alternative to other savings and investments or pensions, according to Leaders, the UK’s largest independent letting specialists.
Says Paul Weller, Managing Director of Leaders: “We anticipate a major expansion of the private rental sector following the recent change in lending criteria and the end of 100% mortgages. This will most likely be driven by a surge in demand from young people continuing to rent much later in life while they save for larger deposits. People will also continue to choose to rent because of its affordability and the flexibility it offers.”
Leaders believe that the private rental sector will need to expand over the next few years to meet demand and the small-scale private landlord will remain critical for supply. Says Mr Weller: “Now is an excellent time to invest as low interest rates and property prices have made it increasingly possible for much needed buy-to-let landlords to enter the market.
Compared with the paltry interest rates on savings, buy-to-let offers very attractive returns, plus the potential of capital appreciation over the long term.”
Of course choosing the right property is key to getting the best from buy-to-let. Leaders therefore advise all landlords – whether new to the market or experienced in letting property – to always seek advice from an independent letting specialist when looking to buy a property to rent out.
“Market conditions vary from area to area, and sometimes even within the same road,” explains Mr Weller. “Before buying a property it is imperative to get sound, up-to-date advice from an independent expert on the lettings market in that area. This will ensure you have the best chance of success from the start.
Above all, you should never rely on buy-to-let advice from an agent who is also selling you the property.”
Leaders – who are fully bonded members of ARLA – have been specialists in residential lettings for more than 25 years and are recognised experts in the industry. They are offering free buy-to-let advice and professional guidance to anyone considering the benefits of this type of investment.
Says Mr Weller: “Our qualified staff know the local market inside out and can offer unparalleled advice on everything you need to know: from what and where to buy, to what features are most in demand by tenants, and how to obtain the best rental value for your property.
“We will draw on our experience to help you with all the key decisions when choosing your buy-to-let property, and also give you a full understanding of what is involved with residential letting and your legal obligations as a landlord.”
Established in 1983, ARLA-registered www.Leaders.co.uk is the UK’s largest independently owned letting specialists with 40 branches across the South.