Rise in Buy To Let market

Mon 26th Sep 2011

A new survey by Assetz reveals over three quarters of investors are planning to grow their portfolios in the next year.

Confidence is high within the buy-to-let market with 76% of investors considering buying more property within the year. Strong rental demand, high and rising rental values and the belief that prices are at or near the bottom are the main incentives to reinvest.

In another boost for the buy-to-let sector, the average void period – the amount of time where a property is left without a tenant – has dropped to its lowest level in more than two years and fallen for three consecutive quarters. Research for the first quarter of 2011 by Paragon Mortgages revealed that average void periods across the private rented sector stood at just 2.8 weeks per year, a steady decline from the high of 3.5 weeks posted in the second quarter of 2010.

Most investors consider their properties as a long-term investment, with 50% stating that long term capital gain is their top priority, closely followed by rental income (44%).

Stuart Law, chief executive of Assetz, says: “The buy to let market is booming with landlords returning in considerable numbers, encouraged by the excellent rental returns currently available as well as the prospect of long term capital growth if property prices continue to strengthen. UK residential property in the right locations is increasingly viewed as a safe haven, offering investors a long-term, low-risk investment for their cash.”

Are you considering entering the buy-to-let market?

The steps:

1. Choose your mortgage

2. Instruct a solicitor for the conveyancing process.

Even if you are considering letting out your existing property there are certain considerations that you will need to take into account:

  • If you have a leasehold property does your lease allow you to rent the property out? Not all do!
  • Even if your lease allows you to rent your property you may first have to seek permission from the freeholder.
  • Existing mortgage – you will need to obtain permission from your existing lender to rent out your property. This consent must be in place prior to you entering into any Tenancy Agreemen

3. Consider your responsibilities as a landlord (finding tenants, collecting rent, repairs on property, tenancy deposit scheme etc.)

4. Arrange tenancy agreements

5. Consider tax implications

Coodes’ fast, efficient buy-to-let service is carried out by a team of experts who are all experienced in different areas such as planning, landlord and tenant issues and disputes, so we bring an encompassing, professional approach to suit your legal requirements as landlords.

Contact Alistair Whyte – telephone: 01872 246200 email : alistair.whyte@coodes.co.uk

Mon 26th Sep 2011

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