The appeal of investing in a buy-to-let property remains as strong as ever, according to a new study.
Research by professional services firm PricewaterhouseCoopers found despite the Government’s decision to reduce mortgage interest tax relief for landlords, there were still plenty of reasons to invest.
Estate agency Leaders’ lettings director Emma Wells said: “Tenant demand remains incredibly high and is expected to continue to rise over the years to come.
“This means investors can buy a property safe in the knowledge there is likely to be a ready supply of tenants looking to rent.
“Demand is such that properties in the right locations that are well-presented let extremely quickly.
“Void periods are at a 13-year low with the average rental property being occupied for almost 50 weeks each year.
“Just 6% of Leaders’ rental properties have been the subject of a void period in the last year, meaning the vast majority of our landlords have enjoyed rental income for at least 12 consecutive months.”
With so many people renting a home, it may come as no surprise to find PwC believes some 25% of homes in the UK will be tenanted, rather than owned, within the next five years.
The buy-to-let market was, it said, extremely important to mortgage lenders.
In light of the recent tax relief changes on buy-to-let mortgage interest, some firms have started to offer limited company buy-to-let finance products, providing landlords with a more tax-efficient option when it comes to investing in property.
Emma said: “To make the most of these favourable market conditions you should consult an local independent expert for impartial advice on which location and property type will best meet your investment goals.”