Whether you\u2019re a prospective or existing landlord, keeping up with the latest news in the world of buy to let is critical. From price growth projections to the availability of buy to let mortgages, our team has compiled some key updates to be aware of.<\/p>\n
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Is buy to let property still a good investment?\u00a0<\/strong><\/span><\/p>\n There\u2019s no denying we\u2019ve seen economic turbulence in the last 18 months, which can create anxiety about investment. In the early days of the Covid-19 pandemic, a great deal of buy to let purchasing activity stalled, and some were left wondering if investing in rental property was still a good idea.<\/p>\n As for finance, many lenders withdrew their buy to let mortgage products from the market \u2013 making it difficult for existing landlords to remortgage, or prospective buyers to move forward with a purchase.<\/p>\n Fortunately, this concern didn\u2019t last for long. In fact, the rental market has proven itself incredibly resilient \u2013 and in many locations around the UK, the value of rental homes has increased. Research from one lender found that<\/a> \u2018the value of the private rented sector in England, Wales and Scotland has grown 5.8 per cent to \u00a31.4 trillion following the housing market boom of the past year\u2019.<\/p>\n In part, this was driven by the stamp duty holiday, which offered many landlords the opportunity to expand their portfolios while saving thousands on their tax bill. Yet while this holiday has now come to an end, our experience is that interest in buy-to-let property has by no means waned.<\/p>\n Low interest rates mean many are getting a limited return on their savings, leading investors to see rental property as the best possible asset to invest in for both a good short-term return and long term price appreciation.<\/p>\n Regional trends: where should buy to let investors look next?\u00a0<\/strong><\/span><\/p>\n So, it\u2019s clear that rental property is still considered a sound investment \u2013 but where<\/em> should prospective buyers be looking? At Articus Finance, we\u2019ve seen increasing diversification in terms of asset location.<\/p>\n Property in London has always been regarded as a solid buy to let investment, given its historically strong price appreciation and reputation for stability. But while this remains a popular option, more and more of our clients are looking to invest across the UK.<\/p>\n The North and North West are particular areas of interest, offering some of the highest rental yields in the country \u2013 ideal for those looking to build an expansive portfolio. Accelerated price growth is also expected in these regions, with hybrid and remote working set to continue for the long term, and \u2018levelling up\u2019 regional economies so high on the government\u2019s agenda.<\/p>\n The availability and cost of buy to let mortgage finance\u00a0<\/strong><\/span><\/p>\n Whether you\u2019re buying a block of flats in Liverpool or refinancing a large rental in Surrey, the availability of the right buy to let mortgage is also a key concern. During the early days of the pandemic, buy to let mortgage finance availability fell drastically, with many lenders withdrawing products from the market.<\/p>\n