A new report from Manchester based buy-to-let specialist Sequre Property Investment has revealed a substantial rise in the number of first-time property investors.
This comes despite the ongoing tax and legislation changes continuing through the sector.
The report from Sequre shows that new landlords entering the buy-to-let market made up 61% of property sales from March 2016 to March 2017 – a rise of 15% in comparison to the previous year.
In addition, the investigation reveals four key reasons why new entrants looked to invest in the market- These were:
- For a secondary income 26%
- Retirement 23%
- Start a portfolio 18%
- Invest for inheritance 14%
Despite the changes to Stamp Duty surcharges and mortgage interest tax relief, Sequre Property Investment recorded a 14.8% increase in overall sales in comparison to last year. Forecasts suggest that this year could exceed this still further.
Graham Davidson, managing director at Sequre Property Investment commented: ‘It’s clear that many investors and landlords remain undeterred from investing in property and are buying wisely to mitigate the changes. Investors had over a year to prepare for the stamp duty changes and were also given plenty of time to adjust to the revised stance on tax relief, however the level of enquiries we’re receiving are at an all-time-high.’
‘Low mortgage rates and rising house prices have both resulted in favourable market conditions for landlords. Savvy investors understand that purchasing buy to let property which produces strong yield returns from the rental income is crucial, as is choosing the right property type and location. A shortage of housing supply in many large cities has continued to keep rental demand high, and these factors are all key attributes of a successful buy to let investment which many novice investors have been keen to take advantage of.’
‘Buy to let property in central locations with high yields and great scope for capital growth results in investors continuing to make a sizable profit even with additional tax payable,’ he concluded.