Recent figures collated from existing landlords suggest that now could be a good time to invest in the buy-to-let market.
The survey suggests that around half of landlords feel that it is a profitable time to invest, with only 1% believing that they should cut the size of their property portfolio.
Similarly, the survey suggested that around 40% of landlords questioned thought that they would raise rents in the coming year.
Landlords Think Now is a Good Time to Invest
Responding to the Council of Mortgage Lenders’ announcement that lending in the buy-to-let market had risen by 5% in the last quarter, one property investment specialist was not surprised. Co-founder of Kingsbridge and Carter Oliver Barber thinks: “Buy-to-let investors will see a gradual profit revival in the years ahead, with regional cities such as Leeds, Manchester and Birmingham offering better returns than London.”
Barber likens the anticipated revival to a “bull market”, suggesting that the rise will last for around fourteen years. He goes on to say: “Those investing in the market now are likely to make the best returns over time.”
Jeremy Raj, partner at law firm Wedlake Ball, disagrees with Barber and believes that more should be done to change the short-term rental market. Raj believes that short-term tenancies “deter developers and means instability for tenants who are not just young, single people but increasingly families wanting and needing more security.”
He goes on: “Rental price volatility and lack of guaranteed income, something the current British rental system encourages, hardly fosters enthusiasm.”
Raj also attacks previous Governments, arguing: “The 1988 Housing Act effectively signalled the end of long-term, Rent Aid protected tenancies and introduced the Assured Shorthold Tenancy.”