Low Buy-To-Let mortgage rates and increased rental yields making UK Buy-To-Let an attractive prospect for property investors
UK property investment is booming after financial experts dubbed the UK Buy-To-Let industry as a property investor’s dream following reports of double-figure rental yields being achieved by smart landlords in parts of the UK.
Some areas of London are providing landlords with 11% rental yields, with the average for the rest of England and Wales not far behind at 8.9%.
The mouth watering rental yields are attracting the interest of even more property investors who want to cash in on the current high demand for quality rental property.
The attraction has been caused by low Buy-To-Let mortgage repayments and the large increases in rental prices reported over the last 18 months.
With the high demand for Private Rental Sector (PRS) properties, potential investors appear to have a ready-made business. However there are many ways for property investors to secure long term profit from their property purchases including offering financial security to tenants using Rent Guarantee insurance.
Even so, there are still risks involved including the risks that residential property values will fall, mortgage rates rise and tenants could default. But with a careful choice of investment property, proper tenant referencing, good management and rent guarantee insurance, such risks can be minimised.
Spokesman for Legal 4 Landlords, Sim Sekhon said: “Property investors who intend to hold property for a length of time will become landlords and need to ensure that they can maximise all profit from their rental portfolios, that’s where Legal 4 Landlords can help. Tenant Referencing ensures that landlords know who they are dealing with and Rent Guarantee insurance provides financial security for both landlord and tenant during the period of the tenancy”.
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