Between the beginning and end of March, the demand for rental properties fell by more than 55%, which a large section of that is possibly due to the suspended transactions within the whole industry advised by the Government.
However, according to Zoopla, the demand for rented homes increased by 30% in April 2020 after the initial decline at the beginning of coronavirus.
Despite the suspended activity during March, the majority of the lettings market remained flexible, which has enabled agents to agree on rental contracts but with online viewings, telephone appointments, and possible delayed start dates.
With the combination of rising property prices and the benefits of renting a home, this allowed the lettings market to remain strong in these challenging conditions. It’s an encouraging sign for landlords and those looking to invest in Buy to Let properties. Year-on-year rental income has increased by 2.4% and whilst the pace of growth is expected to slow as we ease lockdown, it’s much anticipated that it will remain in positive territory.
Things to consider before becoming a landlord in 2020.
1. Finding the right Buy to Let property.
Regardless of whether you are looking for a home to purchase a home for yourself or buy to let, finding a property always comes with the same browsing factors – including location, size, and style.
In terms of location, statistically speaking, rented properties are more popular with local amenities, schools, and public transportation. You have to consider location when you are aiming for a specific audience of tenants, too.
On the other hand, a number of landlords purchase fixer-upper homes and do it up to place their own style on the property. This may also be something you prefer.
2. Could you secure a Buy to Let mortgage?
Unless you analyze your financial and personal situation, you should consider whether you’re likely to be approved for a Buy to Let mortgage.
In comparison to standard mortgages, where you need a 5-10% mortgage deposit, this rises significantly to a minimum of 25% for Buy to Let mortgages. Also, the property you choose will have an impact on the success of your mortgage application. Lenders will look at the rental demand and expected yield, which advances our reasoning for point one.
3. What are your responsibilities as a landlord?
Landlords have plenty of legal and moral responsibilities towards their property and the safety of tenants – so it’s important you take the time to research what you are signing up for.
At Peter Lane & Partners, as well as our variety of property listings in Cambridgeshire, we also offer a Lettings & Management service. Here at our Lettings Department, with over twenty years of experience in the business, our dedicated team are here to help offer landlords our advice and assistance.
For more information, please get in contact with our Huntingdon Lettings office on 01480 406400!