Buying property to let has been a great investment for years in the UK, at least for those who can wait for their investment to mature. According to The Association of Residential Lettings Agents (ARLA), there were two million households in the private rental sector in the UK, which represents a huge market for potential buy to let landlords.
Student debts mean that many graduates are leaving university with debts of up to twenty thousand pounds which will increase by nearly a thousand pounds in interest for each year after they graduate. This has a massive impact on the buy to let sector, meaning tenants are likely to be renting accommodation for much longer than if they were debt-free.
The average age of first time buyers has increased from 29 to 33, which means they are renting for much longer. There are also a great many adults, even those with kids, who still dwell at their family home, renting from their parents.
There is also a generation of career-minded parents who like to ensure that their university-attending children have suitable accommodation. Many landlords make their first step into the buy to let market by purchasing a house to rent to their children and other students. It is a massive benefit to have a tenant who is a relative, in terms of property management and communication. Many prolific buy to let purchasers start their purchasing with a student house for their child, but continue to invest in property long after their child has graduated.
According to ARLA, two thirds of letting agents in central London report having more tenants than available properties. This is rife throughout the South East, where the same lack of property is reported by fifty seven percent of letting agents. Thirty seven percent of letting agents nationwide report having more tenants than properties. With demand exceeding supply, it is still a great time to invest in a buy to let property.
University as a money making enterprise is expanding rapidly, with more and more successful school kids applying for degree courses. The student sector is good for buy to let investors, as it means there will still be plenty of tenants to fill their properties and help with the mortgage repayments.
However, renting a property can be difficult. Landlords should ensure their properties are clean, tidy, safe and well furnished to ensure finding a tenant quickly. You should also find that tenants who are keen to move into a well-maintained property will be more likely to take better care of the property.
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[tags]buy to let property, rent property, buy to let, furnish house to rent, furnish house, furnish home[/tags]
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