For landlords the rental market can offer long-term demand and, particularly with people seemingly renting for longer, now can be a great time to invest in property. Here are a few reasons why now might be the time to become a landlord or diversify your property portfolio.
Increasing rents
The buy-to-let market can be highly lucrative and offer great returns on investment. Average rents increased in the 12 months leading up to December 2022 by 12.1%.*
Supply is short
The shortfall in the supply of rental properties remains and is anticipated to continue for years to come. Simply put, there are far more tenants than available properties.
The trend toward smaller homes
Smaller, more affordable homes are in demand. Flats and more modestly sized homes are appealing simply because they are cheaper to run. Tenants are a little more cost-conscious with the challenges of the cost-of-living crisis.
Bigger can be smaller!
Developing larger properties and then letting them out room by room, in suitable areas, could be a great way to spread the risk of your property investment. Converting terrace homes into flats can double your rental income while helping to alleviate the chronic shortage of affordable homes.
Funding efficiency
Investing in multiple properties, over one large home, could be a shrewd move when it comes to expanding your portfolio. Instead of having your capital tied up in one property, investing in smaller properties means the funds you receive for one could help cover the costs of the other.
Buy-to-let mortgage deals are recovering!
More choices in buy-to-let mortgages are returning to the market, with some 2400 deals available.* This is a sign that the market is regaining stability, with good levels of confidence, creating the perfect environment for long-term investment.
The opportunity to diversify
The more property you own, the more rental markets you could look to pursue. Whether you choose to invest in the student, professional, house, flat, or holiday home markets the opportunities are plentiful.
Let us do the work
When the property has completed and you are now a prospective landlord you can be involved as little or as much as you want. Our lettings team are here for every step of the process, from finding tenants and references to rent collections and check outs.
Whether you are looking to expand or create a property portfolio from scratch, get in touch to see how we can help you today!
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