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Landlords and Investors

Why buy-to-let?

While people are unable to get on the housing ladder or simply enjoy the flexibility of renting, landlords will always be needed and the appeal of letting has always retained its appeal. Although the new changes are daunting, investment into buy-to-let properties is still seen as the best and most secure way of investing money and returning a yield over a long term basis. Many investors begin with one property linked to their residential mortgage and quickly build up a portfolio of several properties as their properties increase in value. Whereas most letting agents provide a basic management service, Simply Rent offers clear and concise consultation, offering advice and information about potential investments and the best mortgages available in addition to a high-quality day-to-day letting service. 

At Simply Rent, we offer bespoke advice to each investor about how to develop their portfolio as well as guiding them through the turbulent changes that are ahead. Each investment has been carefully considered to withstand the test of time; despite the recent changes in stamp duty and the removal of the buy-to-let mortgage interest relief, property prices are still increasing in this area through gentrification as more Londoners are being lured by the one hour train into the city and overall, rent prices are increasing throughout the country. We have noticed a greater demand for lettings and as inflation rises, many of our investors are noticing reasonable returns on their investments. Investment in this industry changes from area to area. In Kettering, property prices for suitable two and three bedroom properties can start from as little as £140,000. With a great demand in the area for rented properties and in an area still deemed affordable, many investors are looking at market towns within an hour commute from London to settle.

According to the English Housing Survey, between 2014-15, '19% of households – equivalent to 4.3 million – were renting privately'. Staggeringly, 'in 2015 there were 5.4 million households in the UK's private rented sector (PRS), a number which will grow to 7.2 million by 2025' (PwC). Whilst there is a deluge of complex tax changes and unclear restrictions on mortgage lending specifically for buy-to-let properties, a significant number of landlords still recognise property as a steady medium-to-long term investment that raises their investment yield much more than merely leaving money stagnant in a bank or on volatile stocks and shares.

If you would like any information on investing or the area, please email us at info@simply-rent.co.uk.

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