BTL investing still a solid move

High demand for rental property in central London is showing buy-to-let investors that investment in the sector is still a safe and profitable move.

Tenants are renting for longer, as many struggle to save a deposit for a property of their own. As a result, the average age of a UK first-time buyer is now 35. This compares with ten years ago, when the average age of a first-time buyer was 24.

In recent years, buy-to-let investment has been viewed as a relatively stable means of investing, providing good rental returns and, especially across parts of London, strong capital growth. But the government has since introduced various tax and stamp duty hikes in a bid to put potential investors off investing in buy-to-let, with an aim to help out first-time buyers.

Income returns for investors may be impacted by these tax changes, but with mortgage rates at record lows and high tenant demand, investors can still reap the benefits of investing in property.

However, investors are being advised to be more careful where they invest, and to do their sums before investing to make sure they will still reap financial rewards when mortgage rates rise, which they inevitably will.

Well-managed rental properties remain in demand, both in London and elsewhere in the UK, while attitudes towards long-term renting appear to be changing. Many tenants are simply renting while they save for a deposit. But others simply prefer the freedom and flexibility which comes with renting, and are actively choosing to rent in the longer-term.

Buy-to-let investors can benefit from this need for rental property in the long-term.

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