Buy-to-let is at cen­tre of boom

Macclesfield Express - - HOMES -

BRI­TAIN is cur­rently in the midst of a buy-to-let ex­plo­sion, with a house be­ing bought for in­vest­ment and rental pur­poses ap­prox­i­mately ev­ery five min­utes.

But with av­er­age house prices ris­ing by more than 210 per cent in the last 20 years and over two mil­lion land­lords op­er­at­ing in the UK, just what is mak­ing the buy-to-let mar­ket flour­ish in such tough eco­nomic times?

Angie Christie, new busi­ness man­ager at Philip James in Dids­bury Vil­lage, said: “Sav­ings rates on the high street have plunged to an all-time low as banks find them­selves re­stricted by strin­gent reg­u­la­tions and tight bud­gets.

“Pen­sion pay­outs have plum­meted by al­most a third too and re­cent in­vest­ment scan­dals have left savers dis­en­chanted with ma­jor fi­nan­cial in­sti­tu­tions.

“These are just some of the rea­sons why more peo­ple are look­ing to­wards prop­erty as a method of cre­at­ing in­come and profit; es­pe­cially as mort­gage rates have also fallen to an all-time low.

“Since 2010, 1.6 mil­lion buy-to-let mort­gages have been sold, to­talling £188 bil­lion worth of ap­proved loans.”

Sec­ond home own­ers are also cash­ing in. Many land­lords across the coun­try have be­come so by mis­take, ei­ther by in­her­it­ing a sec­ond prop­erty or fail­ing to find use for a spare one. The re­wards in the long term are al­lur­ing, with buy-to-let land­lords re­port­edly re­ceiv­ing re­turns of around 1,400 per cent since 1996. This fig­ure beats any other in­vest op­por­tu­nity in the UK.

Angie con­tin­ued: “Be­com­ing a land­lord does in­volve risk though, es­pe­cially if a prop­erty re­mains empty for a while.

“There are many el­e­ments to be con­cerned about; such as the choice of ten­ant, the safety/energy ef­fi­ciency of the build­ing and the in­sur­ance premi­ums in­volved.

“Deal­ing with all of this can be hard work, es­pe­cially if you have lit­tle ex­pe­ri­ence of prop­erty let­ting. En­sur­ing the safety of the build­ing (gas, fire alarms, etc) and putting the right premi­ums in place (mort­gage, in­sur­ance, etc) are le­gal re­quire­ments that can­not be ig­nored.

“It’s not just the prop­erty you are man­ag­ing ei­ther, but also the agents and ten­ants; the lat­ter of which can be ex­tremely de­mand­ing. By pur­su­ing the help of a cer­ti­fied let­tings agency, like Philip James, you can en­sure you take care of all this pro­fes­sion­ally and ap­pro­pri­ately.

“Do it prop­erly and a buy-to-let prop­erty can pro­vide a healthy in­come and a po­ten­tially valu­able nest egg for the not so dis­tant fu­ture.”

‘Do it prop­erly and a buy-to-let prop­erty can pro­vide a healthy in­come and a po­ten­tially valu­able nest egg’

See www.philip­james. for more de­tails.

●» Angie Christie, busi­ness man­ager at Philip James Let­tings in Dids­bury

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