A lot of people were probably hoping the property market would pick up in 2013, but so far that clearly isn’t happening and everywhere I look, there are dozens of properties for sale. A lack of mortgage funding is not helping matters, although lenders are slowly beginning to relax their lending restrictions, so there are still plenty of reasons to consider expanding your property portfolio if you are a landlord in the private sector.
Why invest further in the property market?
Current figures indicate that the average yield for a rental property is just under 6%, which when you look at the interest rates on savings accounts offered by high street lenders, is a great return on investment. So if you are looking for a way to make the most of your savings, or you need to plan for retirement, investing in buy to let property is still a good idea for many people.
Increase in accidental landlords
Many landlords enter the buy to let market by accident rather than design—in many cases because they are stuck with a property they can’t sell for love or money. But whatever the reason, research indicates that 1 in 8 of accidental landlords is more than happy with the money their property is generating and is seriously considering investing in further properties. And they are not the only ones—property website, Rightmove, says nearly three-quarters of professional landlords are planning to add to their property portfolio over the next twelve months, which is good news for the over-stretched rental market.
