Buy to let is a great long-term investment, and after many Covid-induced challenges, the housing market has bounced back, with record levels.
So, why is now a good time to buy to let?
The demand for rental property is up by 57%
Landlords across the country are reporting promising figures, post-pandemic and property developer and landlord, Matt Cottle is advising buyers to snap up this great investment opportunity. He added: “(Winter) is a good time to go house-hunting because most people are distracted by the festivities and the market is less fluid leaving vendors open to lower offers.”
Plus, with rental income up by 39% since the 2008-2009 recession, now is a great time to step onto the rental property ladder.
Low buy-to-let mortgage rate
With mortgage rates still low, homebuyers can find cheap deals, making it cheaper to borrow money. Additionally, this means your monthly mortgage payments will be lower, resulting in a profit margin.
Also, rent prices are running well ahead of the five-year average in several large cities, due to a lack in housing supply, meaning that landlords can achieve higher profit surpluses.
Deposit replacement schemes are ‘here to stay’
‘The Residency’ scheme, implemented in 2018, offers landlords more protection than a traditional deposit, which is capped under five or six weeks’ rent under the Tenant Fees Act, saving time and money.
Deposit replacement schemes are a great way to reduce upfront costs, and we are currently seeing one in two tenancies choosing to take advantage of this option, which is likely to increase demand.
How can you achieve your property dreams?
Venturing on a new property venture can be a daunting thought for many but setting goals along the way is a great way to get the ball rolling. Setting these targets will allow you to achieve your property goals in the timeframe you want.
However, even if you’re not in the financial position to buy a property for a couple of months, it’s a good idea to browse properties and think about putting your offers in. With the right advice, you can make the most out of your property, and guarantee an excellent return on investment.
Looking for a buy-to-let property? Contact us today and get the most out of the 2022 housing market.