Landlords Think Now is a Good Time to Invest

Recent figures collated from existing landlords suggest that now could be a good time to invest in the buy-to-let market.

Invest

The survey suggests that around half of landlords feel that it is a profitable time to invest, with only 1% believing that they should cut the size of their property portfolio.

Similarly, the survey suggested that around 40% of landlords questioned thought that they would raise rents in the coming year.

Landlords Think Now is a Good Time to Invest

Revival

Responding to the Council of Mortgage Lenders’ announcement that lending in the buy-to-let market had risen by 5% in the last quarter, one property investment specialist was not surprised. Co-founder of Kingsbridge and Carter Oliver Barber thinks: “Buy-to-let investors will see a gradual profit revival in the years ahead, with regional cities such as Leeds, Manchester and Birmingham offering better returns than London.”[1]

Barber likens the anticipated revival to a “bull market”, suggesting that the rise will last for around fourteen years. He goes on to say: “Those investing in the market now are likely to make the best returns over time.”[1]

Short-term pains

Jeremy Raj, partner at law firm Wedlake Ball, disagrees with Barber and believes that more should be done to change the short-term rental market. Raj believes that short-term tenancies “deter developers and means instability for tenants who are not just young, single people but increasingly families wanting and needing more security.”[1]

He goes on: “Rental price volatility and lack of guaranteed income, something the current British rental system encourages, hardly fosters enthusiasm.”[1]

Raj also attacks previous Governments, arguing: “The 1988 Housing Act effectively signalled the end of long-term, Rent Aid protected tenancies and introduced the Assured Shorthold Tenancy.”[1]

[1] http://www.landlordexpert.co.uk/2012/09/05/half-of-uk-landlords-think-now-is-a-good-time-to-invest-in-more-buy-to-let-properties/