In light of the Land Registry’s latest price index which showed that house prices were on average 8.4 per cent higher than this time last year, Rick Flay from Belvoir Sheffield, the leading letting agent in Sheffield is advising landlords that future forecasts indicate that house prices will remain level or drop to much lower levels, making it the ideal time to invest in a buy-to-let property.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said, “The 1988 Housing Act made investment in residential property more attractive, especially when it introduced a new type of tenancy which gave landlords more control over their properties. Since then the market has seen a substantial recovery in the private rented sector and the availability buy-to-let loans has also increased the appeal of owning rental property.
“The Office of National Statistics has predicted that the population will rise to over 70 million by 2030, and if the majority of these people can not afford to buy a property, their only alternative is to rent. This means that those who can afford to buy properties will benefit from this increased demand. The market has in the past experienced some turbulent times, but those in the industry are now finding that the rentals market is being left with a lack of high quality stock to meet demand.
Even if capital growth remains low, investors will potentially still get better returns than if they put their money in the bank. Although buy-to-let is now an extremely fruitful investment, landlords should air with caution and always seek the advice of a professional letting agent.”
Landlords should follow our five point plan when taking on such an investment:
- When you buy a property to let out, you are effectively running a small business and you have important legal responsibilities. Make sure that you check what your responsibilities are and seek the advice of a professional letting agent before securing finance.
- Do your research. Make sure that you carefully research the market where you want to buy your property. You can either do this yourself or ask a specialist independent letting agent like Belvoir Sheffield to provide advice on the best area and type of property to rent out, to ensure that you are taking on a sound investment opportunity. Gathering information from estate agents, local papers, existing landlords and even the local authority, about the demand for and supply of, rented housing, will also aid you in the decision making process. Here at Belvoir we offer a consultancy and search service so that you buy the right property at the right price.
- Finding the perfect tenants. Once you have secured finance and researched the market, you will need to consider the types of tenant you are aiming to attract. Bear in mind that single people and families have different requirements.
- Location. Look at how close the property is to local amenities such as shops, transport and schools, and are these the type of amenities that are important to your tenants? If you are looking to let your property out to tenants, check for example how close it is to local schools as this will be a very important factor in the decision to rent for families. Make sure that you always visit the area that you are buying in, do your homework and assess your target market, amazingly lots of investors buy without checking out the local area.
- Market your property effectively. Make sure that you market your property effectively to yield maximum results. Choosing a reputable letting agent can take the strain off this part of the process and will ensure that your property is rented to the ‘right’ sorts of tenants. Here at Belvoir Sheffield, we are letting stock out in an average of nine days, which is down to our first rate marketing power.”
Belvoir Lettings Agency Sheffield is the One Stop Specialists for Landlords including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances.
