Soaring demand for rental accommodation in London maintain investors’ spirits up.
The limitations on landlords’ tax relief declared in the Chancellor’s Summer Budget came as a surprise to many people. Then again, there hasn’t been an overflow of buy-to-let investors looking to sell their properties, as some may have expected immediately following the announcement.
Rents are increasing sooner than house prices on a yearly basis, for the first time since July 2013. However, buy-to-let investors have to be careful that the latest quick increase in rent is likely to be a recover from the uncertainty caused by the lead up to election, rather than a trend that is set to carry on.
Numerous tenants responded to the assurance created by the election result by moving into new properties or committing to long-term leases yet again.
The ever rising demand for rental accommodation is presenting encouragement to buy-to-let investors that property investments still remain an attractive proposition. Private landlords have turn out to be important for the supply of UK housing, and their influence is expected to further increase than collapse.
Latest pension reforms also enabled the senior citizens to withdraw cash from their pension accounts and venture into buy-to-let property.
Investment in London property continues to present better returns than any other typical investment. Moreover, the recent pension freedom announcements have led to an increase in the number of investors. However, landlords have to ensure they treat the recent surge in rents with caution and not go beyond their rental expectations.