Landlords have had plenty of reasons to feel downtrodden in recent years. From higher taxes and tonnes of red tape to more expensive mortgages and lower house prices, it’s no wonder landlords are carefully considering their next moves. With even more legislation set to come down the line, stricter rules, and an overall increase in the cost of living and doing business, it’s no surprise that there’s been an increase in buy-to-let properties hitting the market over the last year.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Despite the less-than-favourable environment, many experts believe that the current state of affairs in the property market will create new opportunities for investors. For those looking for their next project, property investors have plenty of buy-to-let locations to choose from. The rental market has gained momentum in the last few decades, accelerated in part due to the pandemic, which has made interest rates soar as a result of the Bank of England raising the base rate in an attempt to help curb inflation.
Many in the industry believe that if investors are prepared to strike while the iron is hot, while rental demand and rent prices are strong, they can reap the full benefits of their business as long as they are ready for the risks and work associated with being a landlord.
However, there is concern that the level of rent prices currently dominating the market isn’t sustainable. The cost of living crisis is making it tough for some struggling tenants to make rent, and even those able to pay comfortably, there is still the worry that they soon may not be able to as many businesses are making cuts to hours or positions completely.
Ready to expand your property portfolio?
In time, house prices and interest rates will return to reasonable, pre-pandemic levels, so if you’re looking to start or build up your portfolio and have the funds to do so, now may be the time. If you’re considering pursuing buy-to-let properties, get in contact with the experts at Dental & Medical Financial Services to get started today.