Tuesday 24 April 2018

Is now the right time to sell your buy-to-let property?

UK Buy to Let Market:
The UK buy-to-let market is well-known as one of the strongest investment markets around. Rental yields and property values are increasing across the UK – apart from the notable exception of the Central London market which continues to founder. In contrast, regional cities such as Manchester, Liverpool, Leeds and Sheffield have seen remarkable growth which is projected to continue far into the future.
This is largely down to the significant growth in the overall population of renters – the best current estimates state that approximately a quarter of the population will be living in rented accommodation by 2021. Renting is becoming an increasingly accepted long term lifestyle choice, especially amongst younger people for whom avenues to homeownership are largely closed off.
This so-called ‘Generation Rent’ is here to stay, and the rental market will keep growing far into the future because of this. As a consequence, the supply of high quality rental accommodation is shrinking rapidly, especially in key city centre markets. This is going to keep pushing rents upwards.
When you combine the potential financial returns with a base of tenants which is only going to grow, it is easy to see why property investment is a popular option for many people eager to secure their financial future. Property offers high returns in a way which is relatively less risky than other more uncertain forms of investment.
However, despite this, might it be time to streamline your portfolio and begin to sell some of your buy-to-let investments?
The most obvious worry for landlords is the Brexit process. According to a recent survey by Knight Knox, an expert property consultancy based in Manchester, more landlords consider Brexit to be a threat than an opportunity. The uncertainty caused by the process already seems to be all-pervasive and we haven’t even left the European Union yet.
On top of this, the government unveiled tax changes in 2017 which were aimed at landlords and have reduced profit margins. Restrictions on mortgage tax relief and changes to wear and tear allowances are squeezing many investors. This all came after changes to Stamp Duty in 2016 which added an extra 3% on top of new purchases, making new acquisitions harder to justify.
In these circumstances it is reasonable for an investor to look for options to sell their buy-to-let investment and release the capital appreciation that has built up in the property. Unfortunately, this is where many begin to run into difficulties, as selling a buy-to-let investment can be a difficult process.
When selling a regular residential home to an owner-occupier, it is easy – you list your property with Rightmove, Zoopla and a traditional nearby estate agent. When you are selling buy-to-let, the process is much less clear. The growth of the buy-to-let sector has ensured there are more potential investors than ever before. The latest figures from HMRC confirm this, showing that the total number of landlords has grown by 27% since 2011/12.
Despite there now being a surplus of potential landlords looking for new investments, there was no easy way for existing investors to sell their buy-to-let properties to this growing base of buyers. This is where Intus Residential comes in, to make the whole process simple and efficient.
Having sold more than £23.6m worth of buy-to-let property on behalf of investors, we have a wealth of experience in the field. We work with the UK’s largest database of serious, pre-qualified investors in order to sell your buy-to-let property and our specialist after-sales service works to reduce the frustrating risk of buyers pulling out at the last minute.
https://www.landlordzone.co.uk/sponsored/now-right-time-sell-buy-let-property

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