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
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
________________________________ 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
________________________________ 
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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