Landlords Encouraged To Grab Property Bargains In Their Local Areas

Thursday, June 12, 2014
Landlords Encouraged To Grab Property Bargains In Their Local Area

Landlords Encouraged To Grab Property Bargains In Their Local Area

Landlords Should Invest In More
Rental  Properties In Their Local Areas

Landlords and property investors across the UK should be investing in their local market using buy to let mortgages because they already have a good understanding of the local area.

New research conducted by Paragon Mortgages revealed the majority of property investors and existing landlords in the UK who are looking to increase their rental property portfolios are searching in the areas which they are already familiar with.

According to the findings of the research, 86% of existing UK PRS landlords are basing their decision to invest in buy-to-let property on how well they understand their own local markets, with tenant demand and rental yields being significant considerations along with the prospect for capital growth, proximity to the local transport infrastructure and future development plans.

  • 74% of the survey’s respondents said they are searching for property bargains that were close to where they themselves live.
  • 10% of existing landlords would consider purchasing investment properties using buy to let mortgages that were further away from their home locality.
  • 25% of the landlords surveyed are planning to buy further rental properties in the next 12 months.

The UK’s buy to let market is still performing well, with landlords feeling more confident about the future, thanks to the continued demand for rented property and the development of a number of specialist products and services designed to make owning rental properties easier to deal with, including improved buy to let mortgages, rent protection insurance and comprehensive tenant referencing systems.

It is important that property investors and existing portfolio landlords conduct thorough due diligence when planning to purchase further properties, to ensure the right level of tenant demand and they should calculate the expected rental yields based on the actual purchase price and not on the mortgage repayments.

Finding the right buy to let mortgage to complete the purchase of further rental properties is becoming easier as more lenders look to cash in on the demand for rented accommodation in the UK’s private rental sector.

This was written by Mike Clarke. Posted on at 11:45 am. Filed under Buy To Let, Landlord News. Tagged , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.