Intercounty

Landlords are making their return to the market

 
Three years on from the Government passing buy-to-let tax and legislative changes, which resulted in a 3% surcharge on Stamp Duty on the purchase of additional homes also encompassing buy-to-let properties, it appears that landlords are now returning to the market.

Statistics have indicated that there has been an almost 8% increase in the number of landlords registering to buy over the last month, showing that the feeling in the market is overwhelmingly positive. With investors both national and international still wholeheartedly positive about the state of the market in the United Kingdom, according to SevenCapital’s Brexit survey, lettings would appear to be a strong bet once more.

Demand for city centre properties is now at an all-time high; in Birmingham, for example, between 2011 and 2016 around 8,000 homes were completed, whereas demand was closer to 20,000 showing the extent of overdemand and undersupply. This provides a stellar opportunity for landlords looking to invest in a city-centre location in order to reap the highest possible rental yields.

Rental yields by room, an increasingly popular option for landlords, are showing extremely positive values year-on-year; with the country as a whole reporting an average rise of 11%, according to the rental index from Ideal Flatmate.

With the recent spotlight on the rental market from the Government, renters and potential renters will be feeling buoyant in terms of their rights and responsibilities which should embolden them to rent a property, whereas previously they may have been more hesitant to take the step. This newfound confidence amongst renters should provide further comfort to landlords, knowing that there is a strong contingent of potential renters ready to move into their property.

<< News
Powered By: BriefYourMarket.com Intercounty