Despite tempered growth in 2017: Buy-to-let sector expected to remain resilient going forward
- 21st December 2017
- Buy-To-Let Property News
Discretionary landlords continue to swell the supply of property to let emphasising the need to be the best in class
2017 proved to be another good year for the buy-to-let sector. Yields continue to outstrip other asset classes over the long term; London continues to pull in tenants from across the UK, Europe and further afield; and the number of people renting over the next decade is set to increase by 25%.
But recent growth in the sector is not only being driven by semi-professional landlords who already have substantial portfolios, but also ‘discretionary landlords’. These are landlords who have entered the market as they have not been able to sell their property at the price they want.
According to the latest research, landlords with ten properties or more were the most active, making a net addition of one property each over the last three months, often holding properties in partnerships and limited company structures to minimise tax levies and mazimise returns.
Stephen Ludlow, Chairman at ludlowthompson, says: “2017 has been another good year for the private rental sector and investors continue both to expand and improve their portfolios whilst discretionary landlords capitalise on a resilient rental market to support their property plans."
“Looking ahead, given that another interest rate rise is on the cards, it may be useful for investors to think through their business plans soon and review whether any changes to their mortgage arrangements could be worthwhile. For discretionary landlords it would be worth exploring the possibility of releasing latent capital to fund their next purchase."
"With an increasing level of property coming to the market it is imperative to provide the best product. In a more competitve market, regular, inexpensive property improvements, such as a lick of paint or some new soft furnishings, could make all the difference to staying ahead of the competition and securing rental growth. Indeed, whilst tax reliefs have been cut in terms of depreciation they remain available in terms of specific repairs and improvements, thereby incentivising enhancements that in turn drive rents and returns."
"Ensuring a good relationship between tenant and landlord ultimately is beneficial to both sides. Tenants get a responsive landlord who listens to them and fixes any problems that arise, and landlords ensure renters that look after their property and maintain it and are more likely to renew on a long term basis. This provides security and stability for the tenant and higher net returns for landlords, thereby delivering a “win- win” scenario."
"A good agent, such as ludlowthompson, will help support the landlord/tenant relationship by facilitating services and communication between both parties, including an online facility. ludlowthompson's My Account provides up-to-date information concerning the property and is available to both parties."
Here are a selection of reviews from both landlords and tenants who enjoy the extra level of service that ludlowthompson provide:
"Andrew Martin is a highly recommendable representative. I have mentioned him to my friends who are looking for agents to find an accommodation. Andrew's service was fast, reliable, and helpful to my needs and I will always remember that when looking for places in the future." Maria, Acton
"Absolutely first rate service - I have 3 properties in London and they are managed by ludlowthompson because of Jacob." Oliver, City Docklands
"Hannah was quick and efficient in organising viewings, suggesting potential properties and ultimately organising our eventual move. We both found her to be approachable, easy to get on with and confident about her knowledge of the area, making renting through ludlowthompson a really easy choice. Overall, a great asset to the team." Stru, Dulwich
For those landlords interested in talking about getting a new mortgage please contact Chris Lockley at Jigsaw Mortgages here.
2017 has been another good year for the private rental sector and investors continue both to expand and improve their portfolios whilst discretionary landlords capitalise on a resilient rental market to support their property plans
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