Despite
government changes and fresh challenges in the ‘buy-to-let’ market, the future
for rented property will continue to be one of the best bets for the country’s
growing number of tenants as well as landlords.
Although the
market is likely to be slowed down by the threat of stricter ‘buy-to-let’ rules
- including tougher affordability checks for buy to let mortgages and the
withdrawal of tax relief on mortgage interest – we are still reporting an
increase in demand for houses to rent.
If you are a
cash investor, or perhaps an ‘accidental landlord’ who has inherited a property
with no mortgage repayments, you can expect a very healthy return on your
investment – far better than you could achieve from mainstream savings
products.
A priority
in 2017 will be to carry on sourcing more local, good quality rental
accommodation to satisfy both landlord and tenant client demand across the
board.
Recent
figures suggest an encouraging rise in the number of rental
properties coming onto the UK market in nearly 60 per cent of UK towns and cities. And although rents are rising
modestly they are, nevertheless,
rising.
A Labour-backed
inquiry into the nation’s housing crisis revealed that almost two-thirds of UK
tenants don’t expect to afford a mortgage in the next five years either.
Meanwhile,
government house building targets have let them down again. A House of Lords
committee called for 300,000 new homes to be built in England each year - but
in 2015-16 just under 190,000 new properties were added to the housing stock.
The private
rented sector plugs a serious gap and provides essential good quality,
affordable housing for a modern generation of tenants while opening up new
opportunities for people who can invest in ‘buy-to-let’ properties.
New property
investors will need to have a very clear strategy, in terms of what they expect
from rental returns and capital growth. Renting in 2017 is expected to be an
increasingly real alternative to home ownership but landlords need to buy
property at the right price and thoroughly research its marketability.
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