Buy-to-let remains ‘an extremely attractive investment option’

Fri 23 Oct 2015

The appeal of investing in a buy-to-let property remains as strong as ever, according to a recent study.

Research by PricewaterhouseCoopers (PwC) has found that the number of rented homes in the UK is set to rise - meaning there are potentially plenty of reasons to secure a buy-to-let home.

Jane Wilkinson, lettings director at Leaders said: “Tenant demand remains incredibly high and is expected to continue to rise over the years to come. This means investors can buy a property safe in the knowledge there is likely to be a ready supply of tenants looking to rent.

“Demand is such that properties in the right locations that are well-presented let extremely quickly. Void periods are at a 13-year low with the average rental property being occupied for almost 50 weeks each year. Just six per cent of Leaders’ rental properties have been the subject of a void period in the last year, meaning the vast majority of our landlords have enjoyed rental income for at least 12 consecutive months.”

With so many people renting a home, it may come as no surprise to find PwC believes some 25 per cent of all homes in the UK will be tenanted - rather than owned - within the next five years.

High levels of demand can drive rents upwards, helping landlords to enjoy a healthy return on their investment. And in many parts of the country, substantial capital growth is an additional likely source of financial return.

The buy-to-let market has continued to expand over recent years and is now extremely important to mortgage lenders. In light of the recent tax relief changes on buy-to-let mortgage interest, some have even started to offer limited company buy-to-let finance products, providing landlords with a more tax-efficient option when it comes to investing in property.

“There are many excellent opportunities available to investors in the buy-to-let market - both in terms of properties and mortgages - that offer the potential for greater returns than generated by many other investment types,” says Jane. “To make the most of these favourable market conditions, you should consult a local, independent expert such as Leaders for impartial advice on which location and property type will best meet your investment goals.”

For more information on all aspects of buying-to-let please contact your local Leaders branch for expert advice.