Why Buy To Let Is Still A Good Investment

Since the last article on this topic back in August 2021, we are now more than ever being asked to answer; Why Buy To Let Is Still A Good Investment?

There are mixed feelings about the future of buy-to-lets as investments. Some are of the opinion that the sector is thriving and will continue to grow and expand as demand will continue to increase while others feel the amount of regulatory change and costs will drive landlords out of the market.

Here’s our views on trends in the future for Buy-to-let Investments:

Formation of Buy to Let Limited Companies

One way landlords are getting around the end of tax relief on buy-to-let mortgages is by forming limited companies. This is a trend we are seeing occurring more and more.

This is because when registered as a company, landlords can grow their portfolios more quickly as they can offset the interest on their mortgage against the profits they make. They also benefit from corporation tax rates which are lower than income tax ones.

More choices for Buy-to-let mortgages

The increased demand from tenants has had a positive impact on the number of buy-to-let mortgage products available on the market, with some great rates due to the competition. This leads to a lot more choice and competitive rates.

Energy efficient homes pose an opportunity

As the government continues to advance its plans to increase the minimum energy efficiency standards for private rented properties to EPC Band C on new tenancies by 2028, one area of concern is the associated costs involved with implementing the necessary changes to properties, projected to be up to £7,646 per property according to the the Office of National Statistics.

However, there are opportunities out there for your landlords looking to invest. 82% of landlords, investors and brokers in a recent survey said that they’d prioritise “environmental friendliness and energy efficiency” when buying properties. This taps into increased tenant support for sustainable solutions, and could also have a cost benefit for your landlord; green mortgages could offer your buy-to-let investors lower interest rates if they were to invest in energy efficient properties.

The best places for buy-to-let investment

Trends in the number of buy-to-let landlords in the market should also take into account those areas where investors are seeing the most success.

Some areas of the UK offer higher yields for landlords. For example, recent figures show that the North East of England offers some of the best buy-to-let yields.

Whether you’re a property owner looking to sell up or rent out part of your portfolio, or an investor looking to capitalise on an opportunity for growth, we can help you buy, sell, lease or manage your portfolio.

We’re experts in both residential and commercial real estate, and will work with you personally to ensure your investments are worthwhile and serving your best interests.

If you are thinking of investing in property for rental income, and would like further clarification or advice, we would be delighted to assist and help you. 

Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.

 Stonelink International Media Team London