Buy To Let - Still A Sound Investment?

May 16, 2011 - PRLog -- YES is the answer, say property experts Bournecoast who are based in Bournemouth.

Market conditions for professional landlords have never been as good as the demand for properties to rent is still on the increase.

Since the beginning of the recession, the rental sector has seen demand soaring as potential buyers have struggled to enter the property market by jumping on the property ladder.

This has enabled Buy-to-Let (‘BTL’) investors charge record rental returns and experience shorter void periods than ever before.

Des Simmons, Managing Director of Bournecoast said, “As fast as landlords register their properties with us, they’re let.  Demand is still outstripping supply.”

Although conditions generally in the property market are beginning to show slow signs of improvement, Bournecoast believe the rental market will remain buoyant and offer an attractive proposition for investment.

Recent intelligence shows that approximately 33% of landlords have been able to increase the rents they charge on their portfolios.  This, in conjunction with increased tenant demand and the fact that a high proportion of professionals are estimated to be in rented properties for a decade before they are able to buy, means the situation for landlords is likely to improve even further.

Positive market conditions have prompted lenders to start returning to the market, launching fresh mortgage deals to attract new landlords to the market.  This is proving positive as it is attracting more landlords, whether with existing portfolios, or new investors to the market.

Bournecoast say that the number of new mortgage products that are available to BTL investors has increased significantly since the beginning of the downturn; rents have reached an all time high and tenant demand is at its peak.  With such ideal conditions, landlords should feel confident about their prospects over the next few months.

Des said, “With the huge demand from tenants and low interest rates, realistic pricing and the promise of a good ROI, makes BTL a sound investment.  Couple this with the recently announced changes in stamp duty which is aimed at encouraging the finance houses, its easy to understand why we are so positive regarding the market prospects.”

"There is a desperate shortage of rental properties and an urgent need to build new housing in the UK"

He added, “We have many waiting tenants and several new properties ripe for investment, coming onto the market, which would be ideal for student lets and are capable of netting approx £4,000 per month in rent.”

Bournecoast has been established for over 50 years and is still family run.  It prides itself in providing quality properties and recognising a good investment potential as they are also able to offer holiday lets on suitable properties to generate even more income.  
For more information on available investment opportunities and what makes a good investment, contact Bournecoast on 01202 437888 or http://www.bournecoast.co.uk.

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Bournecoast has been established for over 50 years and is still family run. It prides itself in providing quality properties and recognising a good investment potential as they are also able to offer holiday lets on suitable properties to generate even more income.
For more information on available investment opportunities and what makes a good investment, contact Bournecoast on 01202 437888 or http://www.bournecoast.co.uk.