As a private landlord you’re helping provide homes for an ever-increasing number of tenants across the UK. Whether you became a landlord because you decided not to sell a former family home, or you deliberately chose to invest in property, your role in the property market is more important than ever.
It’s widely agreed that the private rented sector is set to become even more relevant in the provision of homes, and that ultimately means that whilst we’re likely to see more ‘accidental’ landlords join the sector, this will be alongside more deliberate investment purchases from existing landlords.
Therefore, if you’re planning to strengthen your investment portfolio to meet this anticipated growing demand, how do you consider which property you would prefer to invest in.
After number of years of slow rates of housebuilding, caused in part by the 2007 - 2009 recession, developers up and down the country are now accelerating the rate at which they’re building homes. The volume of new-build starts now stands at more than 40,000 per quarter, which is up from less than 20,000 per quarter in 2009.
Incentives such as Help to Buy are helping property developers secure sales, however a combination of the upfront costs and affordability mean that not every property can be purchased privately. That’s why some developers offer properties exclusively to investors. The additional benefit for developers is that they can reduce their exposure to some quite hefty marketing costs, which can mean they’re sometimes willing to offer exclusive discounts to private landlords.
Meanwhile tenants favour new-build homes, particularly as they often come complete with brand new fitted kitchens and bathrooms, triple glazed windows and fitted flooring. Meanwhile, many key appliances such as the boiler and heating systems are guaranteed. Also, in some cases, brand new homes can also secure higher rents.
Many cities across the UK have a growing student population, many of whom need somewhere to live. Although, landlords who choose to specialise in shared Student Accommodation must adhere to specific licensing requirements, students can prove to be very good tenants. In the majority of cases, students secure their accommodation well in advance of the new year academic starting, which reduces the likelihood of void periods. Also, student rents are often guaranteed by parents and this can lessen the chances of arrears.
Indeed, the appeal of the UK’s excellent quality Higher Education to overseas students also ensures there’s a demand for high-end homes close to universities.
As the so-called ‘generation rent’ matures, the demands for good quality rental homes will naturally switch to include homes suitable for growing families. Desirable properties will often be located within the catchment area of highly respected schools or be close to transport links.
The benefit of investing in quality family homes in good areas is that they’re likely to be rented quickly, and to tenants who will be looking to stay in their home for longer. Families who have selected a property because of its location to their children’s school are likely to want to stay throughout the duration of their children’s education, and in many cases will treat your property with care and respect.
Whatever your plans to grow your portfolio, Darlows can help you find properties that are forecast to offer long-term growth. We have a national branch network who understand the supply and demand for properties at a local level. We have early access to homes for sale that fit the criteria for a perfect rental investment together with an in-depth knowledge of the local property market.
If you would like to receive exclusive details of properties which are being offered for sale and offer excellent potential for growth, then why not join out Investor Club. Membership to the club is free and comes with a range of additional benefits unavailable to the majority of private landlords.
Conact the Investor Club more information or call us on 079 6012 0267.