The Letting People Comment on the Chancellor’s Latest Budget

Last week’s budget announcement has brought about several changes for property professionals but for landlords, especially those investing in buy-to-let, things are looking up.

Buy-to-let refers to a property purchased specifically to let out to tenants and allows for those buying in this way to take out a mortgage specifically for this purpose; which in turn allows for certain tax benefits.

For  the first time since the recession began, house prices are once again steadily increasing and those looking to make an investment in property will see more housing stock to choose from.

Before committing to buy-to-let however, it’s important to consider several factors. You need to research the marketplace and be sure of the location you want to buy in, and the type of tenant you’d like to attract.

Most people considering a buy-to-let property will want to make at least 125% of themortgage repayments as rent, and as this kind of mortgage tends to be set higher than standard, this can sometimes prove problematic if thorough research isn’t conducted ahead of purchase.

Although getting good value for money is likely to become a lot more difficult in the future, those who have been uncertain about the benefits that would come from buying-to-let in the current climate can rest assured that they will see a much better return in their investment in the near future, as more and more people are likely to look into renting.

The Letting People works with first time buy-to-let investors and those expanding their property portfolios to match landlords with their perfect tenants and is happy to provide additional advice. To find out more please contact your local branch of The Letting People, in Leamington Spa or in Milton Keynes.

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Buy-to-let is back in the news at The Letting People!

Buy-to-let lending in the UK has just hit its highest level for nearly five years …

It was announced last week, by the Council of Mortgage Lenders (CML),that 40,000 mortgages, worth £5.1bn, were advanced to buy-to-let investors in April, May and June, and this was the highest buy-to-let lending since the third quarter of 2008.

Caroline Kempster of The Letting People said “We knew something was happening in the last few months as we have been rushed off our feet with a new surge of property appraisals from buy-to-let landlords! 

The other increased trend we have noticed is the new let-to-buy landlord who has been waiting to move for the last 2-3 years.  These landlords now see an investment opportunity with renting out their current house or flat to fund moving to a new home.

Property investors and savvy landlords can really benefit from the strong tenant demand at present, and we can ensure that their property is ready to let quickly and at the highest rental possible. With just a few worthwhile improvements – such as new flooring, curtains, or fresh decoration – many tenants will appreciate the property being ‘ready-to-move-into’ and be prepared to pay some additional rent.

Furthermore, the Bank of England Governor’s “Forward Guidance” statement last week has created more stability for property investors with the interest rate expected to remain low until at least 2016.“

In addition to creating innovative letting solutions for local landlords, potential new business investors can also gain from the buy-to-let surge as The Letting People now operates on a franchise basis.  Although a background in the property sector is desirable, the organisation looks for energetic, adaptable franchisees with good communication skills and a desire to learn. 

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