Why you should invest in buy to let in Leeds
by on 18th November 2019
House prices have flattened in recent years meaning that some portfolio landlords have begun reducing their property stock and consolidating assets. This is not a recent event either – almost 19% of UK housing stock was bought by investors in 2011, dropping to 11% in 2018. There is now though signs at Hogan’s that investors are coming back to property investment and for 3 primary reasons:
- Mortgage Rates. Buy to Let mortgage rates are at historic lows. They always have been higher than residential mortgages but you can now find BTL rates of 2% and below. These do rise after a 2 or 5 year fix – but you can see examples here.
- More stock available. It stands to reason that the 8% fall in investors buying property nationally has led to increased supply. It is relatively easy to find stock in good investment areas and if you’re looking, we’ll gladly help. The important things to remember with investment is to think long term – 10 years or more. Buy with your head not your heart. You need to source properties that are close to amenities like transport, workplaces and schools as this will increase tenant demand and reduce any void periods.
- Brexit. We’re sorry to mention the word, but the uncertainty of the past 3 years since the referendum has impacted on property. We know an election is imminent, creating more unsureness about the future, but a no deal Brexit looks increasingly unlikely, with many economic experts predicting rising property prices in 2020 and beyond.
If you’re unsure where to invest, this article may help as it gives average property prices across Leeds.
East Leeds – Harehills, Gipton, East End Park and Burmantofts are some of the most affordable areas with the advantage that they’re close to the city centre, where prices rise steeply.
If you’d like any more property investment advice, drop us an email at enquiries@hogans.co
