I saw this article on the BBC website which talks about the numbers of rental properties coming onto the market dramatically increasing after the surge of landlords buying property in March this year. This was due to the rush of sales completing before the new Stamp Duty Tax came into play affecting people purchasing a second property from the 1st April 2016.
The article goes onto point out the increasing numbers of properties being listed to let in certain areas, in some areas an increase of 82%!
It also comments that this could lead to rents reducing as the rental market is flooded with property to let.
I was quite surprised to read this opinion on a BBC news site as it is so different to what we are seeing on the ground in Melton Mowbray. We have seen an increase in rental properties available but these have been quickly snapped up by tenants making May the busiest month of the year so far for us. We have now half the available rental stock for June than we would expect to see as everything that becomes available to let is quickly snapped up.
Rents are still on the increase which is purely due to the continued high level of demand in the town and why it is so important to get local advice if you are considering buying an investment property. We have a large number of tenants registered with us, many of them looking for long term family properties.
Despite the New Stamp Duty on buy to let properties we have many investors looking to purchase property in an around Melton and coming to me for advice on the rental returns.
I think people will always prefer to have bricks and mortar as part of their investment strategy and the long term gains are there for all to see. A town like Melton Mowbray – with its’ good schools and access to many major cities for employment will always create a demand from professionals looking to rent a property.