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Knowing when it’s a good time to buy a house as a prospective homeowner is hard enough, nevermind when you’re thinking about becoming a landlord.

Ultimately, no investment is without risk, and with coming changes in landlord legislation and market fluctuations, investing in property can certainly feel overwhelming. Factoring in whether now is a good time to buy makes the decision even trickier, but learning how to read the market means you can make an informed decision.

What’s the market like right now?

While there have been bumps in the road regarding mortgage rates, and many lenders pulled deals from the market after Kwasi Kwarteng’s 2022 mini budget announcement, investors can rest assured that it seems like the dust is settling.
Unfortunately, interest on buy-to-let mortgages has increased since the start of 2022 after historic lows. Like homeowners, those with existing fixed-year rates won’t see an impact on their finances now, but those looking to buy or refinance soon are likely to see fewer deals and higher rates for a while.

Although, it’s not all doom and gloom. With the close of the Help to Buy Scheme, there may be a larger number of first time buyers waiting to enter the housing market without the means to immediately do so. As such, they are naturally turning to rented accommodation as an alternative to buying. This is good news if you’re a landlord or are considering becoming one.

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

Are you looking for a long or short-term buy-to-let investment?

While a transient first time buyer may only be a short-term tenant, it’s enough for you to get your foot in the door and give you time to start to think about your future buy-to-let plans.

Consider how long you want to be a landlord for, as this could impact whether it’s worth doing right now. If you don’t need easy and immediate access to the money you’re investing, then making a long-term investment is a good option. However, if you’re only in it for the short-term, then you may be subject to fluctuating house prices. That’s not to say that a return on your investment isn’t still possible, just less likely.

Understanding your local market

Planning is everything when it comes to investing in property, so taking the time to brush up on your local knowledge is invaluable, as each region differs from the next.

Get to know what the demand is like in your area by speaking to other landlords, estate agents, and by reading online forums. Doing your research and asking local experts means you’re able to make an educated decision about what is going to work best for you. For example, you might realise that buying a little further afield from where you originally planned is worth it if the rental market is flourishing in that area.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division.

Landlord responsibilities

When making your final decision, keep in mind the purpose of letting out property is not solely to make money. You also have a responsibility to provide safe and secure housing to your tenants.


Source: Property Reporter

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