Interest In Buy-To-Let Properties Increases For First-Time Landlords
With Chancellor Rishi Sunak recently announcing an extension to the stamp duty holiday until the end of June 2021 and interest rates remaining lower than ever, an increasing number of first-time landlords are showing interest in the buy-to-let sector.
According to research conducted by Knowledge Bank in February, for the tenth month running there has been a growth in the number of people looking to invest in buy-to-let property for the first time. This is in addition to recent data reports that show 52% of properties were purchased with cash in 2020, the lowest figure ever recorded. Since reaching a peak of 62% in 2017, that figure has continued to decline. This indicates that more first-time landlords are relying on a mortgage to fund their purchase and enter the buy-to-let sector.
Stamp Duty and low interest rates
The stamp duty holiday has been in effect since July 2020, which has encouraged more landlords to enter the market. In the last six months of 2020, only 50% of new buy-to-let properties were purchased with cash, as landlords looked to make the most of the tax savings currently available.
Low interest rates have also played a key role in this current trend. Mortgage finance is typically used by landlords to fund their investments, and with interest rates at record lows, there is an even greater incentive to enter the market. Savings rates are also very low, which makes property investment a safer alternative in such an unstable financial environment.
Research released at the end of 2020 showed there are now an all-time high 2.7 million buy-to-let landlords in the UK, a figure that has risen by a huge 49% since 2015. This is despite the many regulatory and tax changes that have led to more than 250,000 rental homes coming off the market since the peak period of 2017.
Looking forward to the rest of 2021
The combination of low interest rates and the ongoing stamp duty holiday make this a great time to step into the buy-to-let market. There have been a lot of exciting changes happening in Willesden Green and Brent as a whole, and with the Office of National Statistics recently revealing that the borough is rated as the happiest place to live in England, there are even more reasons to be optimistic.
Becoming a buy-to-rent landlord offers a lot of reward, which is why it’s important to work with a professional and reputable local letting agent. From providing free rental valuations to taking advantage of the latest market data and ensuring the property meets all current legal requirements, it makes the process much easier to manage.
Regal Estates have helped countless buy-to-let investors find the perfect property in North West London to get onto the buy-to-let property ladder and also assist existing landlords expand their portfolios. Regal Estates and are members of the most prominent professional organisations in the sector, including ARLA Propertymark, The Property Ombudsman and Client Money Protection.
Getting the right property advice will enable you to make more informed financial decisions about your buy-to-let investment. While properties valued up to £500,000 are exempt from stamp duty until the end of June 2021 and interest rates remain low, there are potentially many savings to be gained, ensuring you make the most of your budget.
Looking to invest in a buy-to-let property in North West London? Contact our expert lettings team today on 020 8459 2530 or email firstname.lastname@example.org. We will be happy to discuss your requirements and help you find the perfect buy-to-let property from our large portfolio.