The 2022 rental market is soaring, along with the rest of the property market, and with rental values at their highest on record, according to Rightmove’s latest House Price Index, * it’s no wonder that many are choosing to invest in the buy-to-let sector.
Buy-to-let investors borrowed a record £18 billion, a rise of 83% over the last twelve months. Plus, 34% of landlords in the UK are looking to expand their portfolio this year, showing signs of a growing buy-to-let sector.*
So, why should you invest in a buy-to-let property?
House Price Growth
Average asking rents in the UK are rising at the fastest rate ever recorded, reaching £1,068 per calendar month, a rise of 9.9% in the last twelve months**, according to Nationwide Building Society’s House Price Index. Property is an excellent long-term investment because it generates a passive income while also protecting your assets.
If you own a property for at least 10 years, it is likely that its value will increase, leaving you with a profit should you eventually decide to sell it.
Generate Passive Income
Buy-to-Let is a great way to earn passive income, so you can sit back and relax. This has to be one of the biggest benefits of being a landlord.
Renting out a property means you’ll have to spend some time on the property if you’re doing everything yourself. If your property is on the newer side, you’ll need to put in a few hours every month. When renters leave the property, you’ll have to clean up, repaint, promote the property, and find new tenants. However, you’re not looking at too much work in a regular month.
If you’re looking for 100% passive income, hiring our property management services would be something to consider. The only time you’ll need to lift a finger is to collect your cheques at the end of the month!
Income to Cover Your Mortgage Payments
The key to a successful buy-to-let business is to find tenants who will pay your mortgage and also make you some extra money.
If you take advantage of a low buy-to-let mortgage rate, you may be able to make even more money because your monthly payments will be lower, which means you’ll make more money.
Looking to invest in a buy-to-let property? Contact our expert agents for more information.
*Rightmoves latest House Price Index
** Nationwide Building Society’s House Price Index
