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FACT FILE - Buy to let in The UK
Buy to let – Investment Property in  the UK

See also

How to present your rental property for letting

How not to present your rental property for letting

Buy to Let Europe

The Role of the Solicitor for buying and selling property in England and Wales

The annual Buy to Let Guide published November 24, 2008

Looking for Property Related Topics? Search Here

Google

2014 - Buy to Let to let is 18 and according to a report in The Independent on the 26th April 2014 "Over the past 18 years buy-to-let has provided average returns that outstrip those of comparable major asset classes according to a report from the Wrigglesworth Consultancy" More here

Buy-to-let is now 15

The Buy-to-let in the UK has just celebrated it's 15th birthday. According to "Landlord buy-too-let magazine's September edition. Buy-to-let was launched by the Association of Residential Letting Agents at the RAC Club, Pall Mall London ( a venue that ARLA used to hold many meetings at) on the 24th September 1996. Paragon Mortgages was one of the founder lenders. October 2011

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Buying a property to let out in the UK is not new. Investors were purchasing properties throughout the last century. They often bought a property with a long term tenant in residence, but this often meant that tents could only be slightly increased and many people were not prepared to buy property to let out. 

The 1980 Housing Act introduced the Protected Shorthold Tenancy and from that time onwards more and more people have turned to property letting for additional income.

The "Buy to Let" market has been growing considerably in the UK since the mid 1990’s.If you are considering purchasing a second or third property to let out, consider the following:

It should be a medium to long term investment – it is no good purchasing a property on a rising market and selling it a couple of years later. You might have made good money on it, but where are you going to get your income from 10-15 years later on? 

Decide upon the area – Will it be where you live or in a town 200 miles from your home? Contact an experienced letting agent – They know the market – even in the area you live in. The agent should be a member of one of the professional associations in the UK ARLA – NALS- NAEA – RICS etc.   

Maintenance Avoid purchasing a property that is likely to cost a lot on maintenance. Has it got flat roofs for example? 

Finance You should calculate rental and mortgage payments. Take into consideration that there can be rental void periods during the year, rents can go down and mortgage rates increase. 

Detail The property should be well equipped – kitchens – bathrooms to high specification – tenants have plenty of choice generally in the UK and if your property is not up to standard they won’t rent it. If you are furnishing the property don’t consider second hand furniture. The decoration should be light and neutral colours are best. 

  • You should take into consideration the following: Length of lease, if leasehold Service charge and consents to let from freeholder - Some freeholders in blocks of apartments charge for every consent to let and this can be expensive and although you might be able to offset this against Income Tax, it could eat into your rental income. Check out the lease before purchasing. You should also check out the level of service charges for an apartment. If the property has a lift you will have to pay an equal share of maintenance, even if the apartment you are thinking of buying is on the ground floor.
  • Developments with indoor pools and saunas might appear attractive, but you might not necessarily achieve a higher rental than in a comparable that does not have those facilities.
  • Location of property
  • Floor level
  • If you are buying an apartment, try to avoid those that do not have any owner occupiers living there. When there are owner occupiers living on site, they tend to contact the managing agents more regularly if there are problems and ensure that the development generally is being well maintained.
  • if you are purchasing an apartment Many modern apartments offer a living room, kitchen, double bedroom with en-suite shower room, family bathroom and a small single bedroom. This immediately cuts down the rental potential for two people sharing who want nearly equal size bedrooms.
  • Some developments do not provide parking. Even if a tenant walks or takes public transport to work, from experience the majority of tenants still have cars that they use for leisure and food shopping etc.
  • Property type - 4 bedroom property should have at least two bathrooms etc.
  • Bungalows might not always be such an attractive proposition as they have often have long gardens and these have to be maintained. Tenants these days do not generally like gardening, so you have to provide a garden service.
  • Amount to be spent on the property - New bathroom & Kitchen, decoration levels

Gardens Tenants generally do not like gardening. Think very carefully if you are going to buy a property with a very long back garden. Who will maintain it? A gardening service can be expensive, but you should be able to offset the costs off your tax bill. Consider making the garden easy to maintain – gravel on the flower borders, good size patios for barbecues in the summer and if you still have a lawn remember to leave equipment to maintain it with.   

General Information & Points to note before letting your property: Buy to let –Investment and Returning owner occupiers 

This information is given for general guidance only and should therefore not be relied on. It has been prepared by an experienced letting agent operating in the UK market.

It is essential that your property be presented well for letting. It should be well decorated, clean and tidy to attract a tenant who will pay a good rental. 

Under the 1985 Landlord and Tenant Act, Landlords have a legal responsibility to ensure that Tenants are “safe from harm”. This means ensuring that Landlords provide housing that is fit for habitation.  

A property available for rent, must be supplied and maintained to a good standard. Landlords must ensure the structure, hot water and water supply, lighting heating and ventilation is maintained throughout the tenancy. 



HOW DO I LET MY PROPERTY CLICK HERE

IVENTORIES IN THE UK CLICK HERE

HOUSING ACT 2004 CLICK HERE

TENANCY DEPOSIT PROTECTION SCHEME (TDS) UK CLICK HERE


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Landlords are in it for the long-term

UK landlords are still committed to buy-to-let in the long-term despite recent market turbulence, according to independent research commissioned by The Money Centre. In a survey of almost 500 landlords, over half said they expect to stay involved in property letting for more than 10 years: More information February 2008

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See also

             Condensation Problems Click Here

Property News - Click Here

How to present your rental property for letting

How not to present your rental property for letting

ARLA’s Response to the Law Commission Report - August 2008 and The Law CommissionHousing: Encouraging Responsible Letting

See also Energy Performance Certificates in Let Property - 29 January 2008 Click Here

Arbitration - April 2008 - by David Smith - Pain Smith Legal update Click Here

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See Landlord fined £5,500 after double carbon monoxide poisoning in Hackney, London - October 2008


Many UK Landlords facing fines - Blog March 2010


High Wycombe Landlord fined for unsafe house - Blog June 2010


 



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