What’s the future for buy-to-let?
3rd August 2018
Pick up any newspaper or tune in to any news programme and you’ll invariably be presented with analysis of the property market. From house price fluctuations to challenges in the rental market, there’s no shortage of opinion and speculation, and there’s often conflicting advice too. A recurring theme here is around buy-to-let and its future. Has the market changed to such an extent that new entrants have missed the boat? Are the changes in regulations making buy-to-let more hassle than it’s worth? And where do you start to select the right property, raise the finance and ensure optimum occupancy?
It’s important to remember that many commentators don’t personally invest in property or manage buy-to-lets, so there can be a gap in their knowledge of the reality of the market. Around 2.7 million households are within the buy-to-let sector, and this is still predicted to grow by as much as 40% in the next decade, so there are opportunities for growth if you know where to look. There have certainly been fluctuations over the last ten years, but it’s a win-win situation. Rises in the market deliver capital gains, while falls in the market create opportunities for further investment. The crucial factor in success in the buy-to-let market, however, is to source the right properties at the right price and find the best tenants.
Without doubt, a rise in stamp duty, the phasing out of full mortgage interest relief and the introduction of more rigorous mortgage lending criteria for general borrowers and aspiring landlords have made life challenging. But as Andrew Ward, owner of Award Property Management, confirms, if you seek advice from informed and trusted sources, buy-to-let can be a viable – and profitable – option. ‘At Award we’ve worked with a number of first-time and portfolio investors, and we continue to do so,’ says Andrew. ‘We have strong experience in advising clients on potential property investments, and in most cases we go on to manage the properties to ensure that they are let to reliable tenants.
‘The buy-to-let landscape is constantly changing, and it’s vital to stay across the latest developments. Despite operating in one of the UK’s fastest-growing regions, we are still able to uncover real opportunities for profit, and we regard it as our role to guide clients through the process and build for continued success. We pride ourselves on being wholly objective and our best clients rely on our considered advice, whether that’s to buy, sell or hold fire. In essence, we would recommend taking stories that appear in the media at face value and talking to industry experts such as ourselves before making any decisions.’
Award Property Management are letting agents in Cambridge, so if you’re looking to enter the buy-to-let market or a landlord seeking to enhance your portfolio, why not give us a call on 01954 718660? We’d love to hear from you.