As any landlord will know, being involved in buy-to-let can be something of a roller-coaster ride
However, recent indicators suggest that the ride might be smoothing out a little, making it a great time to be a landlord!
On the finance front, interest rates remain low, and are likely to do so for the foreseeable future. Latest indicators suggest a Bank of England base rate rise in late 2016 at the earliest. The number of BTL mortgage products is on the increase, making it a more competitive marketplace, which means better finance deals for landlords.
On house price inflation, many experts are giving positive sentiment.
Just recently, a new report from Rightmove suggested that the price of property coming to market has rebounded to an all-time high, fuelled by a surprise majority-government and a shortage of stock for sale.
The Royal Institute of Chartered Surveyors, have predicted that property prices will rise 25% over the next five years while the director of housebuilder Taylor Wimpey says “a 15 year property boom, with no bust, is more than a distinct possibility” and the residential and commercial industries “about to enter an unprecedented period of boom.”
Mike Hussey, a former Land Securities executive, is quoted by the Sunday Times as telling the Association of Property and Fixed Charge Receivers’ annual meeting in London that a combination of tight supply caused by “glacial” planning process, low interest rates and instability around the world made Britain – and London in particular – highly attractive.
Meanwhile, the Private Rented Sector (PRS) is set to grow as well. The Office for National Statistics estimates the U.K. population will grow from a current 64.8 million to 67.2 million by 2020; with national housing predictions suggesting the current number of households will increase by 1,327,000 households in the next five years.
The PRS is set to become a yet more dominant tenure, creating a need to provide approximately one million new households out of this total. If this were to happen, by 2020, over 24% of all households across the UK would be in the PRS.
In a recent Real Estate Forum speech, Housing Minister Brandon Lewis highlighted the importance of private landlords in creating new rental stock and stated “the last thing we will do is deter good landlords and investors by increasing red tape and unnecessary regulations such as rent controls, which is what the opposition were promising before the election.” This is great news for landlords, both prospective and experienced.
Rents are also on the rise. The latest HomeLet Index shows that new rents rose in all regions of the UK in the three months to May, compared with the same period last year.
M.D. of Northwood, Eric Walker, commented:
“Being in the buy to let market has inherent risks that all landlords must be aware of, but it really helps accelerate success when positive market conditions are on the landlords side. As we enter our 20th year in business, Northwood has witnessed many property cycles and local market changes at our 85 plus offices around the U.K. and supported landlords through them.
However, the core fundamentals of buy to let success based on finding high tenant demand and good quality housing stock, maintained to a high standard, remain”.
In this short video, Eric explains Northwood’s proven approach to “trouble free lettings”:
On the Guaranteed Rent front, a recent independent 5 star testimonial we received, really says it all:
“I unexpectedly had to let my house in the UK whilst I was in Australia. My son had used Northwood in Southampton for the letting of his property and had highly recommended them, so they were my first choice.
They were prompt, professional, polite and positively brilliant in getting things organised, and within a few weeks my house was let and I am headache-free ! They deal with any problems at the house, any maintenance issues and they deal directly with the tenants. 10 out of 10 !!”.
Northwood provides a full range of lettings and sales services and is a leading supplier of Guaranteed Rent across the UK, giving landlords complete peace of mind that their rent will be paid each and every month.
Find us on Twitter @northwoodUK or visit our YouTube Channel.