Is now the perfect time to become a buy-to-let landlord?

As many of you are aware, the UK has entered its first recession in 11 years, which has caused hesitation when it comes to buying a property to let. There is uncertainty and risk. However, now could be the best time to invest, and here are 6 reasons why;

1. It provides a second source of income

There is a lot of uncertainty at the moment, so buying a property with the intention to let it out would be a great idea to give you a second source of income.

In order to get a good rental income, you must choose the property carefully. Look out for location, its proximity to schools, shops, parks, etc, whether or not it has good parking/ a garage, if there is a garden or yard, and other aspects of the house like the number of bedrooms and bathrooms, and whether there is a conservatory.

2. Tenant demand has increased

Tenant demand grew by 33% in March 2020, in comparison with March 2019. This means that there will definitely be a market for rental properties, so it will be a profitable move.
If you manage to buy a good, well-located rental property and keep up to date with all landlord requirements, 2020 is a good year for you to invest.

3. Stamp Duty leniency

We’ve spoken about this Stamp Duty holiday previously, and you can read more about what it is here.

With the Stamp Duty holiday in England and Northern Ireland granting reduced rates on first home purchases and slightly less-reduced rates on second homes, it makes for another great reason to invest. As a buy-to-let landlord, you have to pay an additional 3% on the reduced rates, so the rates work out as follows;

  • A property of lower value than £500,000 =3%
  • A property of value in between £500,001- £925,000 = 8%
  • A property valued between £925,001-£1.5 million = 13%
  • If the property if worth more than £1.5 million = 15%

This is still a reduced rate compared to previous taxes, so make the most of it whilst it lasts!

4. Security in the long-term

Buying a property to let is a long-term investment, and is perfect for those who are looking to invest, but are unsure about stocks and shares. Buying property is risky, but there are great advantages, such as rental yield and equipping yourself with long-term financial security.

5. Mortgage sector changes

There is a large amount of positive movement in the mortgage sector, with many more options becoming available, meaning that those looking to buy-to-let have more borrowing options. There are now 1,735 mortgage options for landlords, so you can find something that suits you and allows you to save.

In addition to an increase in mortgage options, the rates are becoming more competitive, which is a great incentive to anyone trying to get on the property ladder.

6. Government ‘Insulation Scheme’

In a bid to reduce carbon emissions and become net zero by 2050, the UK government has released a £2 billion insulation scheme as part of a larger project. What does this mean for homeowners? Homeowners will receive financial incentives in the form of vouchers of up to £5,000 to go towards energy-saving improvements in their homes. These vouchers will include energy-efficient installation of insulation, solar panels, and air source heat pumps, alongside other things.

Both homeowners and landlords can apply for this grant, and reap the benefits of becoming a green property, some of which include boosting the value of the property when selling or letting.

Whether you're an experienced landlord, it's your first-time letting, or you’re simply looking for more information, you can trust our expert Lettings team to give you the best support. Get in touch with our team today.

You’re in safe hands

Trust our team of local experts to provide the best advice on a wide range of legal and financial issues whenever you’re facing a life change and need the best support.

0800 389 2939

Our team are available Monday to Friday 9am - 5pm

Find Your BranchMEET THE TEAM

She'll be glad you planned ahead

Organising your finances today, while planning for the future can be a challenge. We’ll put the kettle on – and take the pressure off.

GET EXPERT FINANCIAL ADVICE

You'll know when it's time to talk

From making a will, to matters of business law our qualified solicitors can offer advice and guidance. Pop in for a chat or call us to make your free appointment.

GET EXPERT LEGAL ADVICE

Sign up for our newsletter

Your details

No charge. Cancel anytime. We value your privacy and will not share your details.

© Poole Townsend 2017 - 2020. All rights reserved.
Poole Townsend solicitors Ltd (Company no:10964550) is a company registered in England and Wales with its registered office at 69-75 Duke Street, Barrow in Furness, LA14 1RP. A list of directors is available at the registered office address. Authorised and regulated by the Solicitors Regulation Authority number 647087. We are independent financial advisers authorised and regulated by the Financial Conduct Authority. VAT registration number :154365563.

Poole Townsend Estates Ltd. (Company No: 10960705) is a company registered in England and Wales with its registered office at 69-75 Duke Street, Barrow in Furness LA14 1RP. A list of directors is available at the registered office address. Regulated by the Council of Licensed Conveyancers to provide Conveyancing services. (Firm no: 3438) VAT registration number 288092466. Our Estate Agency is a member of the Property Ombudsman scheme.

Poole Townsend Estates Ltd Property Client account has client money protection, to view our Client Money Protection Certificate please click here. The Propertymark Conduct and Membership Rules can be found here.

Professional Indemnity Insurance – please contact Martin Oates at the address above if you require details of cover held.

Registered with the Information Commissioners Office for data protection purposes (ICO No: ZA494153 & ZA331395)

close

Book Your Free Valuation

Fill out the form below and we'll get in touch to arrange your free valuation.

Your Details

We value your privacy and will not share your details.

Top