Guest post by IMS Property Solutions
Despite the Government having announced a series of policy changes aimed at landlords, investing in bricks and mortar is still a worthy asset class thanks to its long term returns, according to IMS Property Solutions.
More than four million households rent privately in the UK and this figure is set to grow as people continue to struggle to get on the housing ladder. However, there is also the growing trend of people choosing to rent rather than buy because of the flexibility it offers them.
Competition for rented homes has intensified over the past 12 months and led to accelerating growth in rents. In the Bicester and Oxford area where IMS Property Solutions is based, yields of between 4-6% are widely possible for investors.
Towns and cities always prove particularly popular with renters due to their range of amenities and facilities. Locations with good road and rail links are also high on the list of desirables for tenants, making these types of places reliable for buy-to-let investment.
Commenting on the current market conditions, Michelle Niziol, Managing Director of IMS Property Group, said: “Growth in rent in the south of England is being fuelled partly by an increase in the number of people leaving London, looking for more affordable areas within the commuter belt. This is particularly so for people aged over 30 and families, who need more space but cannot afford the higher rents of the capital.”
Niziol says that landlords should consider a number of elements when buying a property to let including the following:
- All landlords should establish a letting strategy beginning with the type of tenant you want to attract and then think about how you want to present the property, the cost of running the property and how it will be managed.
- Landlords also need to consider their mortgage needs and taking out specialist landlord insurance.
- When looking to let a property it is vital that it is presented in the most attractive way possible and landlords should carefully maintain its condition for each of the viewings.
- Landlords should be prepared to incur costs throughout the tenancy. Even when the property isn’t occupied, landlords will still need to pay the mortgage and council tax.
- Landlords need to look into the legal elements of letting a property, including the need to have an energy assessment of the property and gas safety checks, to name a few of the requirements.
IMS Lettings Solutions was established by Michelle Niziol in 2015. The business has since grown and now manages a wide range of properties from short-term private and professional lets to large scale investment and refurbishment projects. As a member of The Association of Residential Lettings Agents (ARLA) and the National Association of Estate Agents (NAEA), customers of IMS Property Solutions can rest assured they are dealing with a trusted agent which is externally regulated and adheres to the strict codes of practice that the regulatory body requests of its members.
For further information visit www.imsinternet.co.uk