Data coming from all angles in the first six weeks of the year indicate a market that is cooling and stabilising after a somewhat frantic past twelve months.
But while high-end estate agents in London may be consistently reporting a slowing sales market, there is nothing to suggest, particularly here in West Lothian, that the rental market won’t continue to grow at a steady pace over the coming months.
In fact, there have been numerous reports recently that have highlighted the ongoing strength of the buy-to-let sector, two of which particularly caught our eye and will undoubtedly be of interest to anyone thinking about becoming a landlord.
For ease let’s call them Study One and Study Two. In January, for example, Study One – which was carried out by a surveying firm – found that the buy-to-let sector has now overtaken other areas of the housing market when it comes to growth.
The headline figure is that since December 2014 activity has grown by 37% – that is one busy beginning to the year for landlords, investors and us letting agents.
There are many reasons for this increased activity in the sector, two of which are that there are now a record number of buy-to-let mortgage products and landlords have been able to take advantage of consistently low mortgage rates for some time now.
Now let’s take a look at Study Two, which was carried out by a large estate agency firm. It says that in the last 12 months the number of buy-to-let investors in the UK increased by 8% to around 1.6 million – which, by our calculations, equates to around 2.5% of the population.
What’s more, the net income of these investors, which is calculated as rental income minus all costs, comes in at around the £13bn mark on a yearly basis.
Like stamp duty reform in England, this side of the border the new Land and Buildings Transaction Tax – recently announced by John Swinney – will benefit property investors and landlords. This combined with pension changes, which will allow potential investors to use pension funds for property purchases, will help to boost the market further.
As we have stressed time and again, with a record number of tenants now looking for rental properties and a younger generation that is leaning towards longer-term renting, for anyone thinking about becoming a landlord there really is no better time than the present.
We have further guidance for landlords on fire safety, legionella and plenty more on our blogs page. To get in contact with Letting Solutions please contact us on: 0845 520 1420. Furthermore, our online free property valuation tool can give you an idea of how much your property could earn in monthly rents.