Now that’s set to change with good news on employment and growth, particularly in places such as Market Harborough in Leicestershire where the population is increasing.
“Last year, we saw our rental figures increase by ten per cent, and we predict demand from tenants will continue as more people come to the area. We think landlords will see increasing returns on their investment in 2014, as a result. With the prospect of a steady income stream of new tenants, existing and would-be investment landlords naturally feel more confident.
“Places like Market Harborough in Leicestershire will be very buoyant this year. Local employers are recruiting more staff, new companies are locating to the area, and it is an attractive place to live with excellent rail and road links. In 2013, our landlords saw a gross yield of around five per cent for a typical two bedroom modern property in walking distance of Market Harborough station, and we predict that figure will improve this year.
“We’re expecting more landlords to buy properties to let to provide homes for the growing population there,” she says.
“We don’t think demand from prospective tenants will be weakened by moves to make it easier for people to buy their own homes.”
“There are many reasons why people choose to rent, rather than buy,” she explains. “Many tenants aren’t ready to commit to a mortgage, for example because their jobs move them around the country or they are on fixed term contracts.”
Her advice to first time buy-to-let landlords is to find a good property manager, and to ensure that the property is in good order before tenants move in.
“Tenants rightly expect good service from us when they’re looking for a place to rent,” she says. “As property managers, they also want us to make sure everything is right throughout the tenancy. So we’re delighted to see our landlords offering properties to let of a consistently high standard. That is better for everyone.”