As the rental market continues to boom, with exceptionally strong demand for rented accommodation, there has been an increase in the number of people considering investing in a property to rent out, according to letting specialists Leaders. This includes those new to letting and seasoned investors wishing to purchase more properties for their existing portfolios.
Says Leaders’ Bognor branch manager, Ian Colban: “It’s not difficult to see why buy-to-let is an appealing option for many at the moment.
“The stock market is alarmingly volatile and interest rates are very low, giving poor returns on savings. In contrast, rents are strong, yields are good and there are many opportunities for making a good, solid investment in the current slow sales market.
“In Bognor, and the surrounding areas we are seeing ongoing high demand for all types of rental property, in particular for one and two bedroom flats and family homes.
“Landlords are seeing good rental yields and many tenants are choosing to rent for longer now, giving landlords greater security.”
For people considering investing in a property to let, Leaders point to significant improvements in the buy-to-let mortgage market in recent months, with new lenders entering the market and others expanding their buy-to-let product range. In fact, the number of products available via Leaders Mortgages has increased by almost 25 per cent since the beginning of April, with regional building societies in particular demonstrating an increased appetite to lend in the buy-to-let market with a good choice of competitively priced mortgages.
Says Leaders Mortgages managing director, Paul Rockett: “With more lenders and products available, falling swap rates and the historically low Bank of England base rate, we are starting to see more competition in the market, and this has resulted in a fall in the pricing of variable and fixed rates.
“There have also been improvements in loan to values (LTVs) with a good selection of 80 per cent LTV products currently available.
“This means that landlords are now able to borrow more, and with high tenant demand and increasing rents, lender rental income requirements are easier to satisfy.”
While the lettings market is looking very positive for landlords, it is still important to exercise caution.
Leaders advise investors to take a long term view and to consult an experienced, independent letting expert on exactly what and where to buy for the best investment.
Says Ian: “As an ARLA-registered agent with more than 28 years experience in the industry, we are perfectly placed to help landlords with all aspects of letting – from choosing the right property and finding suitable tenants, to looking after it throughout the tenancy and advising on the market, insurance, legislation and much more.”
For advice you can trust on all aspects of renting or letting in your area please contact your local Leaders branch:
Bognor: 01243 841284.
Chichester: 01243 533533.
For up to date information on the best buy-to-let mortgages visit www.leadersmortgages.co.uk.
Follow us on Twitter: @LeadersSussex.