Is now the right time to be considering a buy-to-let investment?
The budget has been announced, the USA elections are done, The Bank of England has cut interest rates and the new stamp duty rate increase from 3-5% is due to come into effect in March 2025. These are just some of the socio-economic reasons that are leading investors to consider the buy-to-let market right now.
With the New Year on the horizon, it is often a time to assess finances and we have received a number of calls from potential investors who are keen on securing regular income from a buy-to-let. In a recent webinar hosted by Savills estate agent, a few interesting trends about the state of the market were discussed that are of relevance for those considering such an investment.
Lucian Cook from Savills Research hosts a quarterly webinar, and his recent insightful webinar, ‘Stick or Twist’, revealed promising growth forecasts and his thoughts on the direction of the market. Savills predict property prices to increase:
- 2025 + 4%
- 2026 +5.5%
- 2027 +5.0%
- 2028 +4.0%
- 2029 + 3.0%
Savills went on to say that the housing market usually gains momentum from the top down: for instance, High-Net-Worth cash buyers, downsizers, and second-home buyers. However, Savills are currently predicting a bottom-up movement in the first half of 2025, from first-time buyers and buy-to-let investors.
What to consider when considering a buy-to-let investment
So, with the uptick in interest in the buy-to-let market what would Chiltern Relocation recommend to look for when making such an investment? Our overring advice would be to choose wisely. Take into consideration the following key factors:
- Location within the town/city
- Transport links for ease of commuting
- Employability in the area
- Type of tenant you are likely to attract
- Parking options
At Chiltern Relocation we are in the enviable position of understanding exactly what future tenants require. Undertaking relocation work for many blue chips companies we know what HR departments require for their staff and we know what tenants are looking for when taking them out on Viewing Days. Having relocated hundreds of tenants into similar apartments and also having assisted many clients with their buy-to-let investment we know that there are EIGHT secrets to the success of a buy-to-let investment.
Eight Top Tips when considering a buy-to-let investment
- Do not buy brand new
- Choose an apartment block which is less than 20 years old
- Avoid office conversions – windows and light are always limited
- Don’t opt for a ground floor flat. Light and security is always an issue
- Some form of outside space – such as a balcony or communal garden – is sought after
- If buying in a block make sure there is a lift if there are more than two floors
- Ensure distance to train station is within a 15-minute walk
- Make sure that the ground rent is no more than 0.1% of the value of the property
If you are considering a buy-to-let investments and would like more information about our service and how we can make sure you make the right investment decision then please do not hesitate to get in touch. Tel: 01494 672086. Email: enquiries@chilternrelocation.com Web: www.chilternrelocation.com
