Unless you have the cash upfront, you will probably need to take out a buy to let mortgage. Our buy to let mortgage guide answers all of your frequently asked questions, from how to qualify for a...
Buy to let apartments and rental property investments in the UK
Rental property investment opportunities are a good idea because…
We predict that the residential property market in the UK will continue to appreciate in capital growth due to the shortage of new homes being built and the rising population which will increase demand. We uncover the best UK buy-to-let property investment opportunities with good rental yields. Thereby making it easy for you to start investing.
We can help you:
- Start building a buy-to-let property portfolio
- Buy-to-let strategy
- Learn the fundamentals of UK buy to let market
Become more successful with a rock solid tactics targeting capital growth from off-plan property developments and btl investments.
Buy to Let Property UK Market
Buy to Let Property UK Investment Opportunities
One Touch property consultants are an experienced team who will share their expert knowledge to help you take an investment decision with confidence and ease
A strategy is a plan of action and steps that one should take to achieve a long term goal.
Buying to let simply means purchasing property to generate rental income, some people call it btl investment.
Perhaps you've already got to grips with the fundamentals and you know where you want to buy property and you have calculated your budget. Now you just need to learn how to invest in buy to let property.
Purchasing rental investment properties seems straightforward. However, there are various types of UK buy-to-let property investment opportunities to invest in. We will outline some buy-to-let ideas and how you could go about finding good rental investment properties to...
People looking to find out how to build a buy-to-let portfolio will benefit from finding out how other people make money from buy to let. The methods include; buying at a discounted property, conducting property refurbishment to uplift values, social housing high income rents and off-plan property developments.
A combination of these tactics can be included into a winning buy to let strategy. Which buy-to-let strategies working right now? - click the green triangle to find out
Investing in buy-to-let property
- Buying a bargain property
- Making alterations to your property
- High income social housing as buy-to-let
- Off-plan property developments
- Conclusion about investing in rental properties
Buying a bargain property
Finding a below market value property can immediately add equity to your property. In recent years’ it has become increasingly challenging to find a property bargains because unemployment rates have been low and the Bank of England interest rates at all time low has meant that it has been easier for people to afford their mortgage interest payments.
Due to Covid-19, there have been several company closures – particularly in the retail sector – which could see unemployment rise to 10% according to the Financial Times. Increased unemployment could result in more distressed sellers seeking to make a quick sale.
How to find BMV property:
- Mail merging an entire post code of your target area
- Place targeted Google advertising to a specific location
- Working with property buying companies
- Befriending local estate agents
- Attending property auctions
Unless you have a lot of free time and significant resources, you will probably avoid options 1 & 2.
Working with property buying companies
There are various companies such as such as National Property Buyers, We Buy Any Home and Property Cash Buyers that offer to purchase property from a distressed sellers. They would take an option agreement with a distressed seller at a 20% below market value and then try find a buyer for the property.
If you were to purchase the property, you may be able to achieve 10% below market value and still have to pay a property sourcing fee in the region of 3% - so the net benefit is 7%. The sales transaction is often complicated; the distressed seller may not want to leave the property and is highly emotional charged.
Read the reviews on these companies and if you feel that you are ethically aligned to business model, then it can be possible to financially benefit from another person’s misfortune. BMV property and distressed sales is not a part of the market that One Touch operate in.
Befriending Local estate agents
Another way to find property is by befriending local agents. They can give you first dips on some outstanding rental investment properties. You would need to be able to show that you have the ability to move forward quickly with a property purchase by having a mortgage in place. They would have a lenders decision in principle – to find out more about that check out our BTL mortgage guide.
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Attending Property Auctions
In the recent years property auctions have been a very successful way for property owners to sell their properties. Bids are even accepted online or by telephone. Prominent auctioneers including Savills, Bernard Marcus, Allsop and Clive Emson have been achieving 85%+ success rate of total lots on offer being sold, with the most attractive properties securing sales twenty per cent in excess of their asking price.
Bargains can still be achieved at property auction during times of uncertainty. A short term drop in auctioneers success rates were registered during Covid-19 as fewer buyers attended.
Making alterations to your property
A lot of people choose to get into property though buying at auction and then refurbishing the property. An ideal refurbishment property project is a dilapidated property that is in desperate need of repair. From a convenience point of view it makes sense for aspiring landlords to target properties their own area. That way they can manage the property and keep costs under control.
Reconfiguring a property to increase rental income
Low wage growth and house price increases have made owning property increasingly unaffordable. Property ownership has continued to fall and the age of first time buyer increasing. That means in general that more people are living in rental investment properties.
The number of new homes being built is not keeping up with population growth and inward migration. For that reason, savvy landlords have been converting terraced houses from 2 bed homes into five bed houses of multiple occupation (HMO). Reconfiguring a property through innovative design can vastly increase the rental income. A modest amount spent on a conversion can amount to significant increase in rental income with gross yields in excess of ten per cent being achievable.
Taking on a conversion projects takes a large amount of trust in the professional team that will carry out HMO conversions. Be selective and try speak with previous buyers. Do not commit funds ahead of finding a specific project and agreed time frames for conversion.
High income social housing as buy-to-let
We have some partners that source social housing in the North East of England and Scotland which have a low income demographic. Affordable properties circa £60,000 are often rented to social tenants. As the property is has alow entry point and rents are determined by the (LHA) local housing allowance, rents can be £500 per month. That equals makes and attractive 10% gross.
However, you can have problem tenants which may be difficult to evict if the local housing authority or council is still paying the rental income. The property values don’t tend to go up and the local housing authority sets the maximum LHA rental rates. With government cut backs it is unlikely that the rental yields for LHA property will increase.
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Off-plan property developments
This means buying property off-plan from a property developer. The majority of the off-plan property projects that we source are in major UK cities and are typically 6 months to 18 months from completion.
An investor would usually make and exchange deposit of between 10% and 30% of the purchase price. The nationwide and listed property companies may keep the deposit with the solicitors. It is fairly common for the deposit to be used towards the construction costs in the case of small to medium-sized developers.
One Touch can help you as we source off-plan property and buy-to-let apartments in high growth areas, like Manchester which has experienced 35% capital growth over 5 years since 2015. Cities where there are good supply versus demand fundamentals. Manchester has highest population of young professionals under 30. You can read more about Manchester regeneration, London commuter towns article and Birmingham regeneration which outline the drivers for capital and rental growth.
Conclusion about investing in rental properties
When choosing to invest in rental properties one can add value through active management or take a more passive approach by focusing on capital growth.
For those who do not have the time and are still motivated to take advantage of the UK residential property market excellent fundamentals while benefitting from the stamp duty holiday -until March 2021- a vanilla investment approach may be more suitable.
Targeting off-plan buy to let developments could be the ideal solution.
With only 30% deposit with balance on completion, buy to let properties rented to tenants on an AST agreement. New build properties have build warrantees and property management in place. Typical net yields are 5.5% and the bank finance with low rates means that expenses will be covered. This buy to let strategy is best for those with the aim of growing their UK property portfolio by focusing on good capital growth. If this sounds like a suitable way forward, please do get in touch. We would be delighted to assist you!
Buy to let property in the UK is popular with investors looking to achieve capital growth in the long term.
For those looking to access the buy-to-let market, you might be wondering how you can get started with buy-to-let investment in the UK?
Click the green arrow to find out...
If you're considering a buy-to-let investment, you are probably wondering how to get started. Buy-to-let is popular with investors looking to achieve capital growth in the long-term, but there is criteria that needs to be met if you want to be successful in your investment.
There are many aspects of the market you would need to consider before investing. Firstly, you would need to research the towns and cities where you would like to invest and understand average occupancy levels for properties similar to ones you want to invest in, and how much they have increased in value over time. Consider the cost of the property and also average rents for properties that are similar to it. Get an understanding of the tax you will have to pay, from stamp duty when obtaining the property to taxes on rental income.
You would also need to make sure you have the funds available, or a suitable buy-to-let mortgage and deposit to hand. Keep in mind that you may need extra funds for solicitor's fees and for refurbishment if the property requires it.
If you are looking to manage the property yourself, you need to make sure you have the time to properly run it. Alternatively, you can use a management company but you would need to factor in the costs as it will affect the returns you make on your investment.
Anyone can invest in UK property but if you are investing from overseas, you may have to adhere to different taxation legislations. Mortgage availability may also be more limited.
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If you're interested in investing in buy-to-let property and want to talk to one of our investment consultants, why not get in touch today? Alternatively read our buy-to-let tax guide and buy-to-let mortgage guide for more information on obtaining a mortgage and the tax implications associated with owning property in the UK.
Is buy-to-let in the UK still a good option? What are the pros and cons of investing in buy-to-let property?
If you've been thinking of investing in buy-to-let property for a while, you've probably seen the news that additional taxes are now levied on buy-to-let landlords - see our buy-to-let tax guide for more details.
This could lead to to wonder, is buy-to-let in the UK still worth it?
Property should be considered a long-term investment. Although there may be bumps in the road, property prices in general in the UK are on an upward trajectory. This means that if you choose carefully, you can achieve a good return on your investment.
Due to the housing shortage and population increase, there is also a growing demand for property. This means you should be able to achieve good occupancy levels when renting out your property, and when it comes to selling it on there should be willing buyers.
Although yields on residential property tend to be lower than commercial property investments, returns of around 7% can still be achieved if you know where to look. See our best places to invest in property in 2021 to find out where you can achieve good yields and capital growth.
Additional taxes levied on buy-to-let landlords can eat into profit margins, as can periods where the property is not occupied.
Being a buy-to-let landlord can be demanding, especially if you plan on managing the property yourself. You will need to consider the amount of time you can spare to maintain the property and manage the tenancies, queries and finances.
Despite the disadvatanges, many people are still enthusiastic about the UK buy-to-let market. Due to a supply / demand inbalance, property prices have risen despite setbacks such as the pandemic and Brexit, indicating resilience and strong underlying demand.
Start your property journey...
If you're looking to get started with buy-to-let investing, please contact us today. Alternatively if you wish to learn more about the sector, why not learn about the fundamentals of the UK buy-to-let market.
Buy to Let Property UK - Guidance & Tips
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