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Estate Agents Urged to Stick with Buy-to-Let
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Estate Agents Urged to Stick with Buy-to-Let
Some estate agents have started avoiding buy-to-let property sales due to recent Government clampdowns on the sector. However, one expert believes that agencies risk missing our on their share of £1.5 billion of fee income.
Martin Wilkinson, the founder of property investment portal Buy2Let.com, says that despite recent proposals for tax relief cuts and mortgage restrictions, the sector still provides a healthy stream of income for estate agents.
He reports that about 70% of buy-to-let investments are cash purchases, so will not be affected by mortgage accessibility changes. He also found that the sector generates around £100 billion worth of transactions every year, producing typical fee income of £1.5 billion each year – “that’s the equivalent of £60,000 for every agency branch,” Wilkinson states.
He continues: “We know that some agents and investors have been put off buy-to-let by these recent changes, but for many landlords, it’s business as usual. A buoyant rental market is producing some fantastic yields, and rising property prices mean that investors continue to build up equity too, in addition to their rental income.
“There are actually very few asset classes, including bonds or annuities, which offer the same levels of returns as a buy-to-let portfolio, so the sector will continue to attract savvy cash investors who are looking for long-term investments with decent returns.”1
What are your plans for your buy-to-let business in the future? And are these affected by the Government’s proposals?
