Analysis: Buy-to-let will support long-term aspirations too
09-03-2015
The buoyancy of the buy-to-let sector has been well documented and this trend is likely to continue both nationally and regionally.
While it remains vital for landlords to buy the right property in the right area to secure the right rental yield, growing numbers of existing and potential landlords are looking at this market with longer-term financial aspirations. According to Barclays data, three-quarters of buy-to-let homeowners are choosing to purchase their property to invest in their family’s future, including retirement and supplementing university fees.
In addition, despite the planned tax relief cuts, only 9 per cent plan to sell their buy-to-let property, with 23 per cent considering the idea. This confidence in the rental market, and in buy-to-let as a form of valuable financial support, emphasises the positive strides being made throughout the sector.
It also underlines the growing opportunities for intermediaries and the need for efficiency and professionalism when working with buy-to-let clients.
One simple rule is to ensure that the expected rental income is accurate and realistic. Many cases do not complete because these expectations are not met after the results of a survey.