Buy-to-let continues to deliver solid returns that beat many other types of investment. Even with reduced tax breaks, and the addition of new legislation, the market appears to be very profitable. Many investors are seeking to add to their portfolio in the near future.
Property investment is a buyer’s market right now, with the average price of property coming onto the market dropping by 1.3%, or £3,904 over the last month. This fall can be attributed to political uncertainty stemming from Brexit and the upcoming general election.
Unfortunately for sellers, this uncertainty has led to many of them abandoning plans to sell into a more certain time.
However, investors looking for a bargain are able to get more bang for their buck. Prospective landlords can use the savings on buying cheaper property to mitigate the effects of Section 24 tax changes and other increased costs around letting that have cropped up in the last year.
Miles Shipside, Rightmove director and housing market analyst, commented: “I’ve seen lots of unusual events affecting the property market in my 40-year career, but a Brexit deadline followed by a snap general election six weeks later is obviously a new combination for me and for many thousands of buyers and sellers.
“Elections normally dampen activity as uncertainty causes a degree of hesitation, but this one is being called to try to break the deadlock after three years of uncertainty. A more certain outlook, whatever it may be, would be a welcome change for those who are contemplating moving.”
The uncertainty seems to be a positive for buyers, which may explain why the number of sales agreed remains largely unchanged, at only 2.9% lower than this time last year. This suggests that there are still a lot of buyers looking to take advantage of those opportunities.