Regulatory changes make up some of the most important trends in 2018 for the UK’s buy-to-let market. First- or long-time investors, in particular, should be aware of these reforms.
Apart from being updated on current trends, you also need to know how much you have to spend on a new venture. An online buy-to-let remortgage comparison tool, for example, lets you choose the best rates for your budget.
Here are other factors you need to consider:
Once you already know the different costs, set some time to review the new ombudsman scheme that will require landlords to register for the prevention of tenancy disputes. If you recently bought a property, it may be wise to start seeking at least an E energy rating from the Energy Performance Certificates.
This will be a requirement starting in April for new tenancies and renewals. By 2020, it will oblige all buildings to comply with the rule. Otherwise, be ready to pay up to £5,000. Those who still look for properties may now find London to be more affordable, as prices in the capital have been on the decline.
Prices in London are currently dropping mainly because of mortgage regulation, interest rate issues, Brexit and overpriced boroughs. In Kensington and Chelsea, the average price of a residential property costs more than £1.80 million in 2017. While it was almost 13 per cent lower than 2016, it still represented the most expensive value for a London borough.
Savills predicts that prices in Greater London will drop two per cent this year before rebounding in 2020, so it may be a good time to consider a purchase before prices pick up once again.
A real estate investment requires careful consideration on your part, from researching mortgage options to finding strategically located assets. Do you think a buy-to-let investment is a profitable venture?