The press love to build you up and knock you down, and at the moment its buy-to-let that's taking a bashing. Property is an easy target but the reporting is often inaccurate - months behind what is really happening in the industry.
As property experts with over 16 years of experience in letting property in North West London, we have already ridden the peaks and troughs of many property cycles. One thing has remained constant - people always need places to rent. Using our historical knowledge and expert forecasting skills, London Residential brings you the the top five reasons why buy-to-let is bullet proof:-
- The Bank of England interest rate remains at its record low of 0.5% - a level that's been in place since March 2009 and has paved the way for cheaper borrowing, even for landlords. Banks are currently offering amazingly reduced rates for buy-to-let borrowers as they look to maintain the pre-April 1st levels of lending activity.
- Tenant demand remains high, propelled in areas such as Camden Town and Kentish Town by students looking for rental accommodation close to leading universities and a migrating workforce drawn to London's employment opportunities.
- Skilled lettings staff can maximise yields for landlords whatever the market conditions. Our teams in Camden Town and Kentish Town are securing massive yields for our investors, using their local knowledge and expertise to read seasonal trends and manage properties.
- Long-term returns on buy-to-let properties remain strong for those who can look to the future and hold their nerve.
- Positivity is returning in the wider financial sector, with healthy levels of employment and a steadily rising FTSE 100. Notes of optimism in the financial sector always rub off onto property.
Some analysts believe there may be too much pessimism about. Jonathan Harris, director of mortgage broker Anderson Harris, says: “Buy to let goes from strength to strength but of course figures will be skewed by landlords bringing forward purchases to beat the stamp duty deadline. It is highly likely that purchase numbers will slip although we expect remortgaging to continue to thrive as landlords squeeze every penny out of investments to help cover other tax changes such as the reduction in mortgage interest tax relief.”