Buy-to-let is at centre of boom
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. co.uk for more details.
●» Angie Christie, business manager at Philip James Lettings in Didsbury