At Belvoir Dunstable which provides lettings services to landlords and tenants and covers Dunstable, Houghton Regis and Leighton Buzzard we have seen a big change in the market over the past year, and there has been a massive increase in enquiries from buy-to-let investors. The return people can get on other savings is diminishing and they are finding the return they can get on property investment is much better.
There are three types of investors – accidental, those that had come into a little money, and hard-core investors. Those in the latter bracket are looking for the best value and biggest returns and have increased the most in number.
Potential buy-to-let investors should know their target market and establish why they are investing before buying, whether it be for capital growth or income after retirement.
Some landlords are looking to diversify into multi-let properties, such as house-shares, where there are high yields, big demand and attractive cash flow.
Always remember that if a property is marketed at the right price and in a good condition it is taken almost immediately.
Average property values in Central Bedfordshire rose 1.2% in the last quarter, while there are poor savings rates on offer at banks, making the returns on buy-to-let appealing.
Banks and building societies, who can be worried about lending to ordinary home-buyers, are happy to lend to landlords, who are viewed as less of a risk. Hundreds of existing home-owners are dipping their toe in to buy-to-let for the first time.
The number of buy-to-let loans being taken out in the UK is at its highest level in four years, according to the Council of Mortgage Lenders. Around £1 in every £7 lent on mortgages last year went to landlords – a total of £16.4 billion – the CML said.
It was 19 per cent higher than the £13.8 billion advanced in 2011.
If you are thinking of purchasing an investment property and would like some free and impartial advice please call or visit our shop on 18 Church St, Dunstable where we are only too happy to help.
