Buy-to-Let property in the UK offers excellent yields with a good capital growth potential and it looks as though the trend is going to continue into the near future.
What is a buy-to-let property? |
A buy-to-let property is a property which is purchased with the intention of letting out to a tenant and generating rental income. Buy-to-lets are often considered highly lucrative, offering the potential for strong rental income and capital growth upon resale. Buy-to-let investments include a range of asset classes: residential homes, social housing, HMOs (houses in multiple occupation), and holiday rentals – each with different operations and outcomes. |
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Why Invest in Buy-to-Let?
Property in UK has always been one of the most popular asset classes when it comes to investing as it is a tangible product that the investor can have full control over. Property is also usually likely to experience steady growth in value over time.
In addition, the demand for rental accommodation in the UK is extremely high and continuing to rise, with an increasing number of people choosing to rent for longer periods of their lives – making buy-to-let an incredibly lucrative option.
In addition, the demand for rental accommodation in the UK is extremely high and continuing to rise, with an increasing number of people choosing to rent for longer periods of their lives – making buy-to-let an incredibly lucrative option.
Advantages of Buy-to-Let |
Disadvantages of Buy-to-Let |
A regular source of income - Provided you have minimum ‘void periods’ where your property is sat vacant, Buy-to-Let can provide a stable income, all while your property is increasing in value. Rents are rising - Rents are rising at their fastest pace in decades due to increased demand. As of September 2024, the average rent in the UK is £1,159, up 9.2% from the same time last year. Capital growth – The property market is resilient, and even in adversity, it has historically shown consistent growth. As a medium to long-term investment, Buy-to-Let can deliver significant profits for buyers when they decide to sell. |
Buy-to-Let Mortgages - You’ll need a specific mortgage for a Buy-to-Let property, with the amount you can borrow differing from a residential mortgage. The fees and interest rates on these mortgages tend to be higher.
Stamp Duty Surcharge – When purchasing an additional property, you will need to pay an additional 3% on top of the standard Stamp Duty rates. Landlord Responsibilities – Many admin and outgoings are associated with being a landlord, including property maintenance and safety, letting and taxes. Using a reliable Letting Agent can help with this. |
Start the Process with GAB Property Maintenance
If you want to know more about our available Buy-to-Let properties Investment, call us today for more information on 07833 464674 or alternatively, fill in the contact us and one of our team will be in touch to discuss your requirements in more detail.