UK buy-to-let market as buoyant as ever
It’s pretty obvious to anyone that has been keeping an eye on these things that there have been rumours and rumblings about upheaval in the buy-to-let market over the past couple of years. Largely this has been in response to a number of measures taken by the government to curb excessive landlordism and control the market.
However, no matter what new rules have been put in place, the truth is that the market still remains buoyant and a good investment opportunities are still out there in abundance.
Perhaps the biggest change in recent years has been the 3% stamp duty hike on second properties that have been levied on investors. The Daily Telegraph reported that the Treasury has made a reported £2 billion so far from this tax introduced in April 2016.
Likewise, the phasing out of mortgage tax relief has also had an impact. And, of course, we still don’t yet know the full impact that Brexit will have on the market and wider economy.
However, despite these factors making it more tricky to borrow money, the market still remains strong and opportunities for good investment still exist. Low interest rates mean that landlords can take advantage of good mortgage deals, and also has meant that investing in property has offered significantly larger returns than keeping money in the bank. There is a national average yield of around 3.3% (which is much bigger than the less than 1% you’d get in most banks). Plus, in some areas this has been as much as 10%
The simple fact of supply and demand economics also has worked in favour of investors. There simply is not enough housing stock in the UK to satisfy demand, and with new home building unable to keep up with demand, this looks unlikely to change in the near future. Which is why investing in bricks and mortar remains a good idea.
It is difficult for younger people to get on the housing ladder, which means that renting is increasingly an option, which keeps the market in good shape for landlords with the right kinds of properties.
If you would like help to identify the right kind of property for investment here in the Norwich area, then get in touch with our team at Agile. We specialise in the Norfolk area and can help you to find the right kind of investment for you.
Give us a ring on Norwich 01603 567804 or send us a message.