IS BUY TO LET INVESTING BACK?

It may come as no surprise as there has been a lot of press surrounding the private sector rental market. The rental market in London has seen a boom in demand with limited supply, resulting in a heavily fought after market, with increasing rents. Private landlords have been warning of this for some time. The government has systematically dismantled many of the incentives for the small-scale landlord with 1-5 properties. The increased legislation, the removal of many of the tax benefits as well as the additional 3% stamp duty tax has seen a desertion of landlords. As leading estate agents in Highgate, we have seen a reduction of around 60% in BTL buyer registrations over the last 4 years. This is coupled with the selling of properties in portfolios as they became unviable.

Covid also had a major impact on the current situation faced by tenants. With many students and workers returning home from London over the pandemic and fewer tenants looking, rental prices reduced. Once restrictions were lifted and people started returning there has been a shortage of supply. With tenants on low rents reluctant to move coupled with intrinsic low stock levels with high demand, rental prices are surging.

A report by Rightmove.co.uk just published showed.

AVERAGE RENTAL PRICE IN LONDON HAS HIT £2,480pcm

A 5.8% RISE IN RENTS SINCE LAST QUARTER

A 15.7% RISE IN RENTS OVER THE LAST 12 MONTHS

AVERAGE YIELD FOR LANDLORDS OF 5.1%

With Buy to Let investors historically receiving yields of 3+%, the surge in rental income coupled with a sluggish sales market for one and two bedroom flats has created a very inviting BTL market.

Should you be looking to buy, rent or sell with us, Stonebridge (awarded best estate agent in Highgate) are happy to assist. We offer expert advice from our in-house team on all your investor needs.