Buy to Let - who's in, who's out?

The expression 'new normal' has been used relentlessly throughout 2020 to describe the lifestyle shifts the COVID crisis has demanded. Agility has been necessary, along also with some firm emotional resolve as day to day life has seemingly chopped and changed from week to week. 

Buy to let investors are no strangers to this sensation. Government policy, tax changes, Brexit uncertainty and the COVID crisis have ensued to ring fence Buy to Let within a state continual flux for several years. 

The removal of mortgage interest tax relief has halted the old school of large scale Buy to Let investors whose strategy to gain maximum expose to capital growth through high percentage mortgage gearing no longer works. 

First time or nervous investors have in some cases been put off by the property market uncertainty following Brexit, and now COVID. 

HHSRS and other Government legislation has been designed quite rightly to protect tenants, but it is also making it harder for Landlords to 'self manage' and those without the margins to employ a managing agent have a tighter challenge to make the numbers work. 

So amongst this crowd of struggling Landlords who on earth is still investing? The answer is the very wisest and most counter intuitive. 

In a cooler property market there are bargains to be had. As any financial expert will tell you an investment is only as good as the price at which you acquire it. Today's Buy to Let investors understand that this is a long term arena. Capital appreciation might not be racing up in the short term but long term investors can sit out the cloudy spells and will wait for the sun to shine. 

Rental demand remains strong and nationally the number of private rented tenants grows each year so finding tenants is relatively easy, and looks set to continue this way. 

There will of course be more rules, restrictions and dubiously thought out Government legislation to come but with a firm source of income, long term prospects for capital appreciation and few other compelling alternatives for cash investment Buy to Let still excites. 

To discuss the best local Buy to Let hotspots and for more information on our Buy to Let search service please don't hesitate to contact us.