Romans are a 19 branch network of estate agents in Berkshire, North Hampshire and Surrey. With over 20 years of experience, Romans have excellent knowledge of all things property related in the South East.
Two recent reports from the lettings industry underline why now is a great time to become a landlord. The latest Which? Quarterly Consumer Report confirms that the majority of none house owners are struggling to get onto the property ladder. The gap between older financially secure homeowners and those aged 30-49 who have only recently made it onto the housing market, and those who cannot get onto the housing ladder at all is growing wider.
The report also states how becoming a home owner for the first time is becoming increasingly difficult as the rising costs of rent means it is becoming impossible for people to save for large deposits. In fact over half of people under 30 who do not own a home are worried about getting a foothold on the property market.
The National Housing Federation has recently produced a report called ‘The Home Truths 2012’. The report states the cause of this is down to insufficient new homes being built which therefore is stifling supply and inflating rents. The result of this is that the cost of renting privately has gone up 37% in the last five years. The report also predicts that the cost of rent will rise a further 35% over the next six years, and also warns that private rents fuelled by unfulfilled demand are increasing at a higher rate than house prices.
Although this is bad news for renters and first time buyers, for those that are financially stable property owners, this is an excellent time to invest in a buy-to-let property. A report by PricewaterhouseCoopers (PwC) suggests those investing in buy-to-let will make capital as well as rental returns in the long term. With the current climate of uncertain pensions, and a volatile stock market, this could be an excellent way to top up your savings and provide you with an extra income.
It is estimated that some 1.2 million people in the UK currently own a property to rent out. So many people in the UK are using buy-to-let as a way to invest their money, however is this the right investment for you? It is worthwhile getting some professional advice from an independent financial advisor. Buy-to-let is unlikely to make you a quick profit and should be viewed as a long term investment.
Is buy-to-let profitable? With the ever increasing rise in rent, and the fall in house prices, there could be a good bargain out there. However, the area and the location of the property you chose to invest in is a key factor. You will need to choose somewhere with good transport connections and high levels of employment to ensure you have a steady stream of tenants and do not have long periods of your property being empty. Talk to local letting agents who will be able to advise you on demand for rental properties and the level of rent you can expect.