2014 is expected to be a good year for landlords in the UK. Over 50% of landlords expect tenant demand to increase and 40% have reported growth in the last 6 months.
Currently, landlords are in a good position to benefit from the strong yields on property. Anyone who is aspiring to be a buy to let investor can be encouraged by the climbing demand in tenants, which will not only signify long term investment opportunity but will also demonstrate a growing demand for rental homes.
Because it has been so difficult for home buyers to obtain a mortgage and afford a home in the last few years, many people who would have bought a home were forced to rent instead.
The number of lettings, new viewing and applicants are all rising, which means that there is a very strong possibility for prosperity in the rental sector. This is great news for Buy to Let investors and it will open up many profitable opportunities.
Invest for the Long Term
So what does 2014 have in store for the buy to let investment market? Although there has been an increase in demand for rental housing recently, the advice is for investors not to see Buy to Let as a “Get Rich Quickly” scheme. Instead, it is important to think about the long term and make smart investment choices, rather than simply trying to make quick money. For example, the focus should be on looking after tenants and making sure that they are happy, rather than increasing rental rates.
Property Prices on the Rise in 2014
If you are looking to buy a new Buy to Let property and expand your portfolio, this might not be the best opportunity to get a bargain – because property prices will be rising this year. However, there are still possibilities out there to get a property that the average buyer might overlook, in an area where the property values have only just started to recover.
Also, when securing a mortgage is difficult for home buyers, it is also difficult for landlords – so this is another important factor that you will need to consider. This can be a serious financial challenge that you will need to keep in mind if you are purchasing a buy to let property this year.