BUY TO LET BOOM

House prices are still on the increase but it's doing nothing to deter first time investors and existing landlords from buying property to let. 

We've found that first-time investors and existing landlords are still buying properties to let across the whole of the East Midlands despite the ever-increasing house prices.

We caught up with Residential Lettings Director, Jill Griffiths and Director David Woodfield to find out their thoughts on it all.

"Soaring property values mean lower returns but that hasn’t seemed to put off investors.

Investors are still hungry for properties in and around the town despite above average house price inflation stoked by the direct train line to London.

It’s possible for landlords to get yields of up to 1.5 per cent down the road in Northampton but people see properties in Market Harborough as safer assets because of the station and the advantages of living in a popular market town.

The Market Harborough area has seen big price jumps in the last few years, and not all properties with hefty price tags are selling but investors are still buying. Existing investors have done well and want to expand their portfolios, and we are seeing first time landlords coming into the market.

The Pensions reform is attracting new entrants to the market, allowing retirees to put their nest egg into property instead of an annuity, and the market has also been buoyed by the pro-property ownership and investment stance of the new government."

"Landlords are responding to housing need with a dwindling number of young people able to afford to buy their own home.

At the Loughborough office which I'm based, we are celebrating our 20th anniversary this year, and if you look back to when we first opened for business, young couples could afford to be first time buyers with a terraced house in the town centre at less than £40,000. Today, that same property would be closer to £140,000, which is obviously way out of reach for most youngsters.

The result has been a boom in the tenancy market in Loughborough over the past five to 15 years. This has encouraged people to enter the buy to let market for the first time and to build up property portfolios.

One common way this happens is for the parents of a student at the university to buy a house for their child to live in while he or she is studying. After the child graduates and moves on, the parents retain ownership and rent it out to a new generation of students or youngsters.

We're also seeing more landlords choosing to buy new properties to keep down maintenance costs and improve their return on investment"

If you need some advice on buying or renting, why not get in touch with our team who will gladly talk you through the process.

Call us at your nearest office on:

Leicester Office - 0116 242 9922

Loughborough Office - 01509 235534

Market Harborough Office - 01858 431315

How to keep costs down as a landlord

The residential lettings team at Andrew Granger & Co aims to keep costs under control for landlords by carrying out all tenant referencing and credit referencing in-house and only outsourcing skills where necessary. We also prepare our own inventories and carry out final inspections, as well as interim inspections.

This approach allows us to make savings for both us and the tenant. It also helps us to make an informed decision on whether to accept a tenant or not and does not rely simply on a scoring system.

By carrying out our own inventories and final inspections we are also able to keep ourselves updated on any improvements which generally avoids too many future disputes between tenants and landlords. This also benefits property investors by keeping the administration within the department, so staff can be fully involved.

We are also able to provide reference information for future landlords at a minimum charge, which again reflects our ability to carry out everything in-house.

Want to find out more about the buy-to-let ladder? Contact our Lettings team.

Is now the time to buy to let?

Andrew Granger & Co, leading property specialists in the East Midlands, expect more people will be taking the plunge into the buy to let market in 2014 while existing landlords will be expanding their stock.

Jill Griffiths, the company’s specialist partner in lettings, says many people who have been considering buying to let have been postponing the decision because of uncertainty about the economy.

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.