Despite negative headlines about buy-to-let as an investment in the UK, buying a property to rent out in Leicestershire is a savvy move for investors. In fact it could be a better time than ever to invest in a rental property. Here’s why…
Leicester is on the up
LendInvest’s latest buy-to-let index has ranked Leicester as the 9th best place to buy-to-let in the UK for 2018. What’s more, the city has risen a remarkable 17 places in the annual index, proving that Leicester has rapidly become more in demand for people looking to rent a home.
Increased demand means increased rent
The same research found that Leicester is in second place for the top 10 areas for rental price rises in the UK in the past year. Average rents in Leicester have increased by 5.3% which is second only to Manchester at 5.76%. And when you consider this comes against a back drop of falling rents in London and the South East making a significant contribution to a national rent drop of 0.6%, these figures seem all the more impressive and encouraging to both existing and potential landlords.
What about the rest of the East Midlands?
Leicester’s buoyant market has had a ripple effect across the whole of the East Midlands with the latest Landbay Rental Index reporting the region had the fastest rise in residential rates in the whole of the UK from February 2017 to February 2018, with a rise of 2.24%, an impressive three times more than the national average.
What do I need to know about becoming a landlord?
Recent changes to the law mean that full mortgage interest tax relief has come into effect and rental revenue is added to income to decide tax bands. The fact that this new law coincides with tight new regulations designed to protect tenants, means that some potential landlords have been put off investing in a buy-to-let property. However, fines will only apply to landlords who fail to meet their obligations to their tenants and in the East Midlands, any extra tax incurred in a buy-to-let mortgage can be offset at least in part by the facts that rental costs are rising in the area.
Property Management in Market Harborough
If you are interested in buying a property to rent out in the Harborough area, please call us to find out more about our property management service which can include rent collection and review, accounting, repair supervision, compliance with regulations, strategy planning and more.
Please call us on 01858 450 020 for more information.