There has been growing hostility in the media, over the past year at least, towards buy-to-let after stories relating to poor property conditions and fast-rising rents hit the headlines. Many of these perceptions are unfair, in that most private rented sector landlords want to provide good quality housing to tenants. Investing in the right type of property in the right place, with a target tenant in mind, can be financially rewarding, despite growing tax liabilities and legislation.

So, here are our ‘Top 5’ reasons for keeping your faith in buy to let:

  1. Capital Returns are Good

    The UK saw an average house price growth of 20.4% from 2020-2022, and although we doubt to see the same level of growth over the next few years, your investment property should continue to grow in value.

 

  1. Rental Returns are Strong

    It has been widely reported that rents have increased significantly, and there are no signs of these taking a backward step. There are several ‘high yield’ areas across the country, and indeed in Devon, that continue to provide good yields and returns for investors.

 

  1. Rental Demand High

    Rightmove has recently reported its highest level of demand from searching tenants, increasing by 20% in 2022. Now almost exactly 20% of housing stock in England is privately rented, offering a much-needed opportunity to tenants.

 

  1. Protection Available for Landlord’s is Increasing

    In the past two years, many new service levels and insurance products have been introduced to the market. Rent Guarantee protection has become more widely available and comprehensive, and there has also been an introduction of ‘Eviction Cover’ for landlords, protecting against the costs associated with evicting tenants. Some agencies are also able to offer a whole years’ worth of rent, in advance, to the landlord, such as The Complete Advanced Rent Option.

 

  1. You are Providing a Home

    As cheesy as it sounds, landlords are genuinely contributing to society by providing housing to those that perhaps can’t secure, or don’t want to own their own home. Recent research has shown that it isn’t the ‘battle ground’ that the media report it to be, with 56% of tenants in England and Wales scoring their landlords 8, 9 or 10 out of 10, with only 8% gave a score of 0, or 2.

 

Are you thinking of investing in your first property? Or adding to your existing portfolio? Speak to our team for help and advice on the most lucrative investments.