So May has finally arrived and, if it wasn’t for the recent bout of stunning weather, spring would very definitely be in the air. The Royal Wedding seemed to go down a storm and the new Duke and Duchess of Cambridge are probably looking forward to a few days away from it all. Unfortunately, it’s back to work for the rest of us.
However, there is some good news; after the economic slump, the buy-to-let property market might just be looking up.
The growth figures announced last week indicate a good recovery for the UK economy in retail and in manufacturing. Though it’s difficult to read many wider implications, it seems like people are becoming more confident of their economic futures and are staring to spend their income in shops again. This is good news for landlords, as people may be feeling more secure about their incomes and may be more willing to commit to a longer rental contract or higher monthly rent.
The credit crunch was the start of the economic downturn and many potential first time buyers are struggling to get mortgages, as confirmed by the report from the Legal and General Mortgage Club issued last week. Of course, this is good news for landlords; there should continue to be a number of new tenants coming onto the rental market, particularly the traditional first time buyer.
Of course, it’s still worth investing in Rent Guarantee Insurance. Even if the wider economy is strong and the buy-to-let property market as a whole is strong, you are not going to be letting to the whole market! Your individual tenants may still encounter difficulties when it comes to paying the rent and it’s really important to keep your own financial security in mind.
So the outlook for landlords for the rest of the year looks positive. The economy might just start to turn up and lending conditions are still tight for high risk borrowers such as first time buyers; all this means there should be a good supply of tenants in the rental market. If you’re looking for new occupants make sure you keep your insurance policy up to date and make the most of May!