WHY THE BUY-TO-LET MARKET IS BOOMING
The property market is thriving again, with first time buyers entering the market and investors focussing on increasing their portfolios. But why are we seeing such high activity now, especially considering all the uncertainty that was anticipated post Brexit?
Figures highlight how active the market is. House prices hit record highs last month, up to an average price of £254,606 across the UK. This is a staggering 1.1% higher than February alone, with transactions up 48.5% across February and March. This is certainly backed up by what we are witnessing here at Sequre, making it even more advantageous to purchase a discounted property through Sequre’s bulk buying method.
What is causing this rise?
Several factors are contributing to this high activity in the property market. Notably, the stamp duty extension has seen a wave of investors make purchases on property with the continued opportunity to make savings of up to £30,000. Not only this, but we are also seeing approvals for mortgages at their highest rate since 2016.
The number of first-time buyers and landlords entering the market is also increasing as a direct result of these initiatives, with a rising number of 95 percent mortgages becoming available again.
Why buy-to-let
There had been much scaremongering in the buy-to-let market, largely because of recent changes to tax and regulations, with some experts forecasting a ‘mass-exodus’ from the market. Landlords are taking a far more rational approach, however.
The total number of sales in 2020 by landlords were at the lowest rate since 2013. Whilst the various lockdowns witnessed last year are likely to have had an impact on this, investors will notice a positive trend in the market.
The average rent on a newly let home was 4.4% higher in March when compared to the same month last year, with properties in the North achieving a rental increase of 6.8%. The main cause for this is a lack of stock for prospective renters. With some landlords choosing to sell up property as opposed to continue renting, rents are pushed higher for those holding their property assets, with reduced supply creating greater demand.
This is of course great news for landlords. With an increase in offers likely to be put on the table for a rented property, landlords can not only expect to achieve higher rents but also lower void periods.
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Where to invest
It comes as no surprise that the North is still considered one of the best places to invest in property. To be more specific, when looking at buy-to-let profitability and potential for capital gains, the North West has performed particularly well.
Detached properties in the North West of the UK rose in value by a staggering 7.1 percent, 3 percent higher than the UK average. The North as a whole is also hitting much of the top 10 when it comes to the most profitable places to be a landlord, with monthly profits of over £400 achieved.
Sequre Property Investment are specialists in sourcing high-income producing buy to let property investments in key areas across the UK. Check out our available investments here, or to get in touch, you can contact us here.
or call us now on 0800 011 2277