Buy-to-let remains a popular investment option for many investors, despite being the subject of major reform over the last three years.
A raft of government tax hikes has had an adverse impact on the sector, which largely explains why fewer people are investing in the buy-to-let sector, but the aftermath of the pandemic could prompt a change.
“Whether you are considering your first buy-to-let venture or looking to expand your existing portfolio, the aftermath of the Covid-19 pandemic could be quite beneficial for some,” said Craig Upton, marketing director of UK Property Finance.
The latest data from Halifax shows that average property values rose by 1.6%, or £3,770, month-on-month in July, while rents increased 1.5% last month when compared with June, according to Homelet.
Looking on an annual basis, 10 of the 12 regions monitored by HomeLet showed an increase in rental values between July 2019 and July 2020, with two of those regions seeing a rise of more than 4.5%.
With property experts across the UK are expecting a vast wave of pent up demand from renters to be released over the coming weeks and months, there appears to be plenty of room for growth in rental values
Upton continued: “Those unable to move due to mandatory lockdown and business closures are now free to put their plans into action, which could see demand for rental properties soar and average rents spike as a result.
“It’s also widely predicted that impaired job prospects and economic uncertainty for many will drive up demand for rental properties. It’s likely to be some time before the British public have the financial confidence needed to make major purchase decisions, further increasing demand for rental properties.
“All of this is likely to be compounded by the difficulties many will encounter in both raising the funds necessary to qualify for a mortgage and getting their applications approved by major lenders.”
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