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Investing in property? Here are our top tips!

With high demand for property driving up house prices and rents across the country, now is a great time for new or established landlords to ride the wave by investing. But where should you start, and how can you improve your chances of a respectable return? Read on to find out.

Choose your location

Ideally, it’s sensible to invest in an area within a manageable radius of your current location. This will allow you to visit the property easily, complete any necessary improvements, or keep an eye on contractors. If you live nearby, you’re also more likely to know which streets and neighbourhoods are the most desirable, helping you identify golden opportunities as soon as they arise.

Once you’ve settled on a general area, spend some time researching the current market conditions, including the average local rent and sale price for the type of property you’re interested in buying.

Hint: A trusted local agent like ourselves can advise you on this.

Identify potential ways to add value

While searching for the perfect rental, consider ways you could improve a property to make it more appealing to your ideal tenant. Could you add an extra bedroom or a home office by converting the loft? Is the property worth renovating to bring it in line with more high-end lets? This is where your market research will come into its own.

Other ways to increase profit may include selling off additional land a tenant won’t need or splitting up a building into apartments. Just make sure you obtain advice from a relevant professional before you invest.

Decide on funding

Yes, opportunities are endless for cash buyers, but if you have the minimum deposit (usually 25%), a buy-to-let mortgage can help you achieve your dreams. The maximum you can borrow is linked to the rental income you expect to receive, which should be 25–30% higher than your mortgage payment.

Specialist lenders may also provide a bridging loan to cover the cost of renovations while you get the property up-to-scratch.

Beyond these top tips, our property experts are always on hand to help. Contact us to discuss potential investment opportunities or book a rental valuation.

What are tenants on the hunt for in a property?

A recent report by the Social Market Foundation (SMF) has revealed tenants’ top priorities when choosing a home.* The results may help landlords make the most out of their properties while providing a valuable service for the wider community.

While the private rental sector faces huge demand, landlords who listen to their renters’ needs are more likely to attract long-term, conscientious tenants desiring a secure home.**

So, what steps should landlords take next?

Pitch the price just right

After financial pressure brought about by COVID-19 and the cost of living crisis, it’s not surprising that 55% of tenants consider price above all else. However, many renters (35%) also prioritise bigger properties, so where is the sweet spot?

Understanding regional dynamics can allow landlords to balance the property’s worth with affordability considerations. For example, some tourist-heavy counties have a disparity between house prices and local wages as homes are snapped up for the holiday market. Rents based purely on the property’s sale value may exclude local families in these areas.

A lettings valuation will give you a clear baseline to adjust accordingly, depending on your circumstances and long-term financial goals – and the type of tenant you’d prefer.

Consider allowing pets

According to the SMF survey, 18% of tenants seek rentals that welcome animal companions. Compare this to the mere 7% of landlords who actively market their homes as pet-friendly.

If you’re preparing a new rental property, perhaps think of ways to make it more suitable for pets, such as choosing wooden or tiled floors over carpets, or securing the garden.

Provide value for money

Everyone loves a good deal – including renters. Although many tenants have a tight budget, plenty will pay more for high-quality interiors and decent gardens. In fact, the latter was cited as a top priority, especially for those looking to create a long-term home.

Choose a property near amenities

If you’re planning to invest in a buy-to-let property, it’s worth knowing that 38% of renters wish to live near their workplace. Public transport facilities and access to shops also factor in for 37% and 36% of tenants, respectively. Therefore, it’s worth searching for opportunities that tick these boxes.

Want to learn more? Contact us to discuss how to boost your property’s rental potential and book a lettings valuation.

*Social Market Foundation

**Paragon Bank

Find out the latest about the current market

After two years of extreme market activity, you’d be forgiven for thinking the tide is ready to turn. But despite burgeoning constraints on household finances, the buying frenzy continues, with properties still selling at almost record speeds nationwide.*

But what’s driving this situation? The leading cause appears to be a general lack of supply. From delays brought about by the pandemic to a chronic shortage of new homes across the UK, the supply-demand ratio is proving difficult to balance.

Low-interest rates and rising inflation also mean that buyers hope to reduce their potential mortgage debt. This combination of factors has contributed to UK house prices increasing by 9.8% between March 2021 and 2022 – adding £24,000 to the average value.**

However, with society in the grip of the cost-of-living crisis and the government announcing measures to tackle inflation, the long-term picture is uncertain. Currently, the market is strong – and will probably remain so for some months.

Do you know how much your home is worth right now? If you’re thinking of selling, contact us to book a valuation with us today.

*Data based on a recent market analysis by Home.co.uk.

**UK House Price Index: March 2022.

More landlords are needed to equal out rising tenant demand

You may have heard how well the sales market has performed over the past couple of years, pushing prices up 12.4% nationally*. The rental market has followed hot on the heels of this trend, with around three tenants currently vying for each property.**

Compared to the previous year, the number of available rental homes has dropped by 9%, which has nudged up the average price by £150 per calendar month.*** This means tenants now pay around £1,088 outside of London or £2,193 PCM in the capital.

But what’s driving this steep increase in demand? There are several factors involved. Rising house prices may force tenants to rent for longer than planned, meaning fewer homes are circulating on the market. Almost a fifth of landlords report tenants are staying put for longer than in previous years.****

In addition, concern over upcoming rental reforms has prompted some landlords to take their properties off the market. Dwindling stock further encourages tenants to remain in their current rental while they search for somewhere else to live.

The fallout from the pandemic has also muddied the waters, with many people choosing to move back to urban centres or escape to the country to work remotely. The latter is partly responsible for the intense pressures faced by tenants in popular rural hotspots.

Without more landlords joining the market to ease supply, many people may be forced to stay in unsuitable accommodation, leave their local areas, or even risk homelessness.

The good news is that if you have a property to spare, now is a great time to get involved and reap the long-term rewards a solid rental income can provide. This is especially true if you’re letting in areas recently boosted by the Elizabeth Line or where supply is strained.

Curious about how much your rental property is worth in the current market? Our friendly team is ready and waiting to book your lettings valuation.

*UK House Price Index (ONS: April 2022).

**According to a recent report by Property Reporter

**Data from TwentyCI and Rightmove (early 2021 to early 2022).

****Property Reporter (June 2022).

Spruce up your surroundings this August

Nature is fantastic for our mental and physical health, and being around plants and animals has many proven benefits, such as reducing stress and increasing oxygen supply.

As society becomes more conscious about living in harmony with the natural world, homeowners, architects, and interior designers everywhere are exploring the concept of biophilic design.

Never heard of it? Biophilic literally means ‘the love of living things’, and it’s all about lessening the divide between artificial environments and the natural world by bringing in the abundant greenery and materials available beyond your front door.

The pandemic created a change in lifestyle and priorities that prompted many of us to appreciate fresh air and green space to a greater degree. How you replicate that freedom inside your home depends on your budget and the amount of time you wish to invest.

On a macro level, this might mean creating a garden or sunroom either by repurposing a space or extending into the garden. Alternatively, large picture windows and glazed doors are great for framing a view and capturing sunlight.

Not much to see outside? If you have a garden or terrace, you could vary your planting scheme to encourage birds and wildlife or set up nesting boxes and feeding stations. Window boxes and windowsill herbs will also help to blur the line between inside and out.

Small details within your home can make a big difference too. Use natural materials, fibres, colours, and prints/patterns whenever possible, whether you’re refitting your kitchen or sprucing up your décor. Of course, if you can introduce plants or even a living wall somewhere in your home (or a courtyard), even better.

Improvements that appeal to buyers' desires can also increase your home's saleability. Even a few tweaks can help viewers appreciate your property's lifestyle, so think light, fresh, serene, and you can’t go far wrong.

Our team can provide an up-to-date valuation that reflects any recent changes you’ve made. We’re also happy to discuss specific ideas to maximise your asking price. Contact us today to book a face-to-face consultation.

Could your home have increased in price?

With inflation reaching 9%* and the cost-of-living crisis undermining consumer confidence across the board, it may be surprising that the average UK house price recently hit a record high. While this is fantastic news for sellers, the latest figures from the Nationwide Building Society suggest the market is strong but losing steam.

According to Nationwide’s figures, the average home currently costs £271,613. But the latest release of the UK House Price Index actually puts the average slightly higher at £281,000 – a 12.4% increase compared to the previous period.**

However, there’s some evidence that the market may be heading towards a pinch point as rising interest rates and a potential economic slowdown cast their shadow. In the past three months, the growth rate has decreased – although June was the 11th month in a row that prices rose.

In the coming months, widespread financial pressures may reduce the number of approved mortgages and lessen overall demand, which could affect average house prices. Currently, the market is resilient, which may be explained by a lack of supply and a buoyant labour market.

What does all this mean for you? If you’re planning to sell, a ‘sooner rather than later’ attitude could prove advantageous. This is especially true in popular areas for buyers, such as the South and North West of England, East Anglia, and Wales.

Increasing prices can positively influence how much your home is worth. The only way to know for sure is by booking an up-to-date valuation – just contact us to arrange yours today.

*Consumer Price Inflation (ONS: May 2021–2).

** UK House Price Index (ONS: April 2021–2).

High demand sparks quick sales across the UK

Are you thinking of selling soon? You’re probably wondering how long the process will take. Right now, your chances of achieving a fast sale are strong, despite the recent rise in interest rates.

This is partly linked to the high demand experienced by the property market since the pandemic, which has created a dip in the number of homes available nationwide.

Specifically, it takes a typical UK seller 97 days between listing their home and selling it subject to contract.* By breaking down the data, we see that 11% of properties only take two weeks to see the same result.

However, the picture does alter slightly depending on the region. For example, Scotland is proving to be a hot market, with fortnight sellers rising to 18%. This figure increases to a whopping 23% for Edinburgh homeowners.

The Southwest is another fast-moving region, which is unsurprising given the attention it received from buyers during the height of the pandemic. Post-COVID, demand in this area is still rocketing, boosting prices by 17% since 2019.* 13 of properties here sell within the two-week period, and 16% for Bristol.

Meanwhile, the East of England, the West Midlands, and Wales sit just above the average at 12%. Other hotspots include Portsmouth and Birmingham. Interestingly, the London market is a little slower, with buyers snapping up 7% of properties within a fortnight.

While some forecasters predict a slowing down of the market as interest rates rise to tackle inflation, the short-term market remains robust. Listing now could be a great way to maximise your chances of a fast and profitable sale.

Not sure how much your home is currently worth? Book a valuation today to find out.

*Data sourced from an analysis by estate agent comparison site, GetAgent

*Rightmove (July 2022).