A new report by mortgage lender Kent Reliance shows the future looks bright for Britain’s buy-to-let (BTL) sector and that the current climate is sound for BTL investors.
The research shows that a prolonged absence of first-time buyers across the UK will almost inevitably drive up demand for tenanted property. As demand for rental properties continues to increase in Britain, the report reveals estimates that rental costs are set to increase.
As well as a continued shortfall of first-time buyers and consequently a rising demand for rental property and increased rental costs, the Kent Reliance report points to how Britain’s BTL market is becoming increasingly more professional as it continues to bridge the supply gap.
According to the report, 31% of landlords make a full-time living from their rental property investments. Being full-time landlords warrants comprehensive professionality of the whole buy-to-let process, which is beneficial to both landlords and tenants.
The number of landlords making a full-time income from BTL has increased from 26% to 31% in the last three years. Setting up a limited company centred on BTL investment portfolios comes with advantages to landlords, namely enabling them to offset interest gained through mortgages against tax costs.
The report shows that during the first quarter of 2018, almost 80% of applications for buy-to-let mortgages were made via limited companies opposed to sole trading landlords. This compares to just 50% of BTL mortgage applications being made by limited companies two years ago.
With the BTL sector being increasingly professional and demand for rental property continuing to grow, now could be a good time to get involved in BTL in Britain. If you are looking for your perfect rental property investment in London or the South East or would like to speak to a professional about any aspect of BTL, get in touch.