With plenty of opportunities for high yielding buy to let properties, should you be investing in the North of England? We ask youngsRPS' Residential Lettings Experts, Fiona Roe and Teresa Sargeant.
The buy-to-let market has been subject to much speculation in recent months, with experts suggesting that high mortgage rates, tenancy reforms and an impending cut to the capital gains tax-free allowance will drive many landlords out of the industry. However, buying a home still remains out of reach for many with rental property remaining their only option and with recent data from Goodlord showing that potential yields for buy-to-let properties are highest here in the North East, now seems to be the time to invest.
Fiona Roe, Lettings Manager for youngsRPS Northallerton comments, “With mortgage rates stabilising somewhat, prospective landlords in the north of England have much better odds of achieving good rental yields than those in the south of the country. There is still huge tenant demand for rental properties across the country but with significantly lower property prices here than in the south there is still lots of potential to achieve huge returns on your investment. Areas like Northallerton are booming in popularity of tenants looking for the country life with easy access to commutable cities.”
Of course, rental yield is not the only factor to consider when investing in property. Short-term profits are appealing, but investors also want their properties to grow in value over time and this will vary hugely depending on the levels of borrowing and the yield generated.
According to the Office for National Statistics 75% of renters stay in their properties for longer periods of time, good news for landlords looking for a steady long term income stream.
Teresa Sargeant, Lettings Manager at youngsRPS Hexham advises, “demand for rentals remains extremely high across the board, ranging from flats and apartments to larger family homes and retirement relocations. Those Landlords looking to expand their property portfolio should be assessing the market to spot the gaps and making this their focus, all things that we advise on. It is crucial that choosing the right style of property, the right location, and of course the right price is vital to any prospective Landlords considerations.”
Will new legislation impact Landlords profits?
The recent Rent Reform Act, newly introduced energy efficiency requirements and other private residential rental sector developments due in 2023 will most likely impact on short term profits, but efficient property management can ensure this don’t become an issue.
Teresa continues, “We understand that whilst legislation is vital when protecting tenants, it can be difficult to keep up with, and that’s why we keep up to date for you.”
