A recent dataset published by HMRC has shown that April’s stamp duty rise has hardly had any effect at all in terms of deterring new and existing landlords from buying up properties.
In fact, summer 2016 has been an extraordinarily busy time in the buy-to-let sector, with almost 25% of all residential properties sold in this period being bought either as secondary residential homes or as buy-to-let investments.
Of the 235,000 homes bought within the three-month period encompassing July to September, nearly 60,000 were bought by private landlords or those seeking a second residence. These are figures that have completely surpassed everyone’s predictions.
Here at UK Property Finance, we too have experienced a much higher-than-normal percentage of calls relating to buy-to-let financing options, with more and more people thinking about buying new properties with a view to renting them out in order to provide a steady source of income.
What makes the buy-to-let market so attractive?
Although the government has taken steps to make life more expensive for prospective buy-to-let landlords, in an effort to encourage more people to buy their own homes, the fact of the matter is that buying a property to rent it out can still be a financially rewarding experience.
Many landlords buy properties with the intention of charging rates of rent that are significantly higher than the associated mortgage repayments as a means of providing a new source of income.
In addition to this, with house prices rising all the time, buy-to-let properties can also be thought of as a long-term investment. As the worth of a property rises, so does the rent, and the increase in equity means that a buy-to-let landlord can usually remortgage a property within a few years in order to finance the purchase of additional buy-to-let real estate.
Of course, there are a number of potential downsides associated with becoming a landlord, but these should in no way discourage anyone from considering the available options.
As leading property financiers, UK Property Finance is able to source and arrange a wide array of short- and long-term borrowing options that are ideal for new and experienced landlords, whether they are first-time landlords, limited companies, or seasoned property experts.
Our buy-to-let products are highly competitive with affordable repayment options, and we also offer free and impartial expert advice to anyone thinking about any type of property investment whatsoever.