We are pleased to report that landlords can expect another good year as more tenants flood on to the market. An LSL Property Services study shows nearly 60 per cent of landlords expect greater tenant demand over the next 12 months.
From 2,195 people polled, 41 per cent had already seen a rise in tenant demand in the last six months of 2013.
It is a huge boost to buy-to-let landlords who can expect rents to increase or stay steady due to higher demand.
More tenants coming onto the market is also crucial to reducing void periods, the period in between tenancies when landlords receive no rent. We believe it is crucial for landlords to have high demand to fill their property every month and not have any void periods.
Today’s survey shows more landlords are feeling confident they can fill their homes with tenants at decent rents.
Mortgage issues
We have watched the mortgage market in 2013 improve dramatically after years of problems facing borrowers. In particular the buy-to-let market grew significantly as lenders saw landlords as secure borrowers and observed high rents and tenant demand.
But despite the improvements the mortgage market is still a difficult sector to navigate and professional help can be crucial.
Buying a property is a huge financial commitment and a mortgage is one of the biggest loans anyone can take out. This is why it is so important to get it right.
More than three-quarters of landlords believe now is a good time to buy or sell rental properties, with 18 per cent of respondents expecting to grow their own portfolio in the next 12 months.
But a third of respondents say it is harder to raise mortgage finance now than one year ago.
Just one in six cite cheap finance as a key reason for why it is a good time to invest, though this is up from one in 11 in December 2012.
This shows that problems still exist in lenders allowing landlords to build portfolios as they remain risk-averse after the financial crisis.
There are lenders who will help you and offer flexible deals such as refurbishment options or owning many properties. Our expertise can guide you to the lenders that have the right deal for you as a landlord and maximise your income.
Being a landlord is a commercial enterprise so it is important to treat it like running a business and get expert advice.
The buy-to-let mortgage market is complex and professional advice could save you thousands of pounds.
Becoming a landlord
With rising tenant demand but mortgage finance remaining difficult to access, we could be the key to becoming a landlord.
House prices have started to rise again in the UK across all regions and especially in London and the south-east.
We are pleased to see the fundamentals of investing in property improving of over the last year and looking strong for 2014.
Now seems the time to seek professional advice and examine whether to extend your portfolio or become a first time landlord.
