Owning your home or investing in property is something that many of us will do at some point in our life. Whether it’s for capital growth or for income generation, investing in bricks and mortar in the UK is as popular as ever. 

Despite the negative news about anti-landlord legislation, complicated tax rules and rising interest rates, the fact is the UK has a housing shortage and demand for homes are at an all time high.  According to Rightmove demand for rental homes are up 23% compared to this time last year, but on the same token the number of small homes (studios, 1 & 2 beds) available to rent have dropped by approximately 4% whilst homes for sale have risen by 13%. So is this a good time to get into the buy to let market?


What Type of Property to Buy?

During the pandemic, larger homes with more outdoor space soared in demand in both the rental and sales market. But now as inflation rises and the UK enters a period of recession we have seen rental demand for studios and 1 or 2 bed homes rise as families start to cut costs and first time buyers hold on to their deposits to wait for interest rates and prices to settle.

For cash buyers this could be an ideal time to enter the market. 

What Return?

What is the purpose of your investment?

Capital growth or regular income?

With variable rents and property prices, a good rental yield in the UK is considered to be around 6-8%* depending on location. Some areas in like London will be less  but capital growth may compensate for this in the long term.

6% – 8%*

*Source: natwest.com

Let Agreed

Once you have decided to invest in a Buy to Let property, will you be a hands on or hands off landlord? 

Many landlords will be looking to manage the property themselves, however if you are unfamiliar with the letting process from tenant finding through to managing maintenance issues and tenant queries it may be advisable to find someone that can guide  and assist you in your journey. 

Make sure you start off on the right foot and safeguard your investment for you and your tenants. 

Contact Hakka Properties today.

See how we can help you on your Buy To Let journey – from search through to long term management.
Important: Hakka Properties does not provide investment advice.