Buy To Let 1st Sep 2017
A new poll (Knight Knox) has found that more than half of UK landlords are confident about the buy to let sector.
59% of landlords surveyed are confident in renting out property as a source of income, with only 11% having lost confidence and 30% being unsure, according to the survey. It further found that half of respondents intend to buy another rental property within the next five years despite the recent policy changes introduced by the Government affecting their tax. The survey also found that 44% of landlords have been renting out property for five years or fewer, suggesting a strong appetite for entry into the market.
Good news then that in spite of changes including tax and stamp duty, landlords remain confident about the returns that can be generated by this asset class. Indeed, buy to let landlords in Scotland are currently enjoying returns averaging 4.9%. Close to 6 million properties in the UK are now in the private rented sector, with this expected to rise to 7.2 million by 2025, which is the equivalent of a quarter of all homes. With demand continuing to outstrip supply, and rents continuing to rise, investors can benefit from monthly yield and capital appreciation.
Over the last year Scotland has recorded some of the biggest rent rises across the UK, with landlords increasing rents by more than 3.6% – higher than the rate of inflation of 2.6% – in the latest survey to the end of July 2017. The average monthly rent averaged at £630, up from £607 in July of last year.
Experts believe that landlords are more comfortable increasing rent prices during the summer months than in spring because the market experiences an increase in demand. Furthermore, the continual shortfall in properties Scotland wide, and the overall decline in homeownership means that rents will not drop any time soon.
The above shows that investment in buy to let in Scotland is the way forward. The Key Place has in depth knowledge of the local markets in which we operate which can help inform your buy to let decisions. We also offer a full buy to let service. We can source high yield properties, help find the best mortgage, complete the acquisition and then manage your investment. Contact us now for further information.
We can also direct you to the following blogs which provide buy to let information and highlight investment opportunities: