It has recently been revealed that many property professionals already investing in the UK are set to expand their portfolios in 2019, remaining confident in the British property market despite the uncertainty of Brexit and squeeze on affordability as house prices remain high. For many Brits, the financial reward yielded from property investment continues to outweigh the benefits of alternative investment options.
So, here’s some top things to remember, if you’re thinking of building on your buy-to-let (BTL) portfolio in 2019:
- Despite ‘Brexit’, mortgage interest rates remain low, offering landlords a fantastic selection of reasonable mortgage deals to choose from. We recommend locking in a longer-term deal, which are currently being offered with great, low mortgage rates.
- House prices have now declined from their peak in 2018. Whilst sellers can still rest assured that they’re achieving great prices for their properties, landlords will also recognise this as a move in the right direction, helping them to build on their projected rental yields.
- Demand for suitable rental properties remains high, while stock is still in low supply. Invest in the right area and you’ll likely have no problems in attracting multiple prospective tenants and achieving attractive rates.
Property Wire and HMRC have recently reported that the majority of property professionals who have already invested in the British property market are keen to expand on their portfolios in 2019 and remain positive that their businesses will flourish, despite an air of Brexit uncertainty and squeeze on profits thanks to current economics.
MT Finance has also reported that over 80% of property investors plan to grow their portfolios this year, with less than 20% claiming not to be thinking of a boost. Of the 80% planning to build on their existing revenue, just over half reported that they were looking to buy in the South East, supporting the region’s reign as one of the best places in the UK to invest.
In addition to this, HMRC have revealed that stamp duty transactions fell by almost £1 billion last year, suggesting that the UK property market has indeed experienced a reduction in high-value purchase transactions and that house prices have started to settle from their recent spike. Once again, this reinforces the fantastic opportunity for landlords looking to expand on their portfolios this year.
“The reassurance that many UK property professionals, already invested in the rental market, are planning on building their portfolios - despite our current economic and political challenges - really is great news for the future of the rental market. It should act as comfort to any landlords currently sitting on the fence when thinking of buying more property this year,” comments Allison Thompson, Managing Director of Lettings for Leaders.
Looking to invest in property this year? Check out our property hotspots, or call your local Leaders branch.