Buy to let – Risk or Reward?

The current state of play in the buy to let market, with rising rates and falling rents, may leave many of the 400,000 buy to let landlords and investors feeling a little twitchy. House prices are starting to fall or stall in many areas of the UK after a massive period of growth, so investors may not be seeing the return they expected for maintaining their property portfolio.

Aggressive remortgaging to release profits for more property purchases, rather than building an equity buffer, may see many landlords looking to sell property fast and a way ‘out of the game´ to avoid losing out.

According to the National Association of Estate Agents, rents are up just 1.8% – a figure that fails to reflect higher house prices – leaving landlords torn between holding on to their properties as long-term investments or cashing in with a fast property sale.

Anxious landlords may be waiting on the latest quarterly survey of the Association of Residential Lettings Agents before making their move. It shows that tenant demand is rising in the majority of Central London agencies, which investors hope will push rents up and reenergise the market. Whether this ray of light from the South will be enough to tempt Northern landlords and investors into hanging onto their portfolios is open to debate.

What´s clear is that those who own multiple properties and have enough equity built up are less likely to feel the pinch. Those investors are weighing up two scenarios, the first being a period of rents not representing house prices, the second the thought of capital gains liabilities should they sell.

It´s a difficult time for buy to let investors, but here at Swift Capital we can tailor a solution to your individual needs. Contact us today, take us through your situation, and you may find that a quick property sale is the best course of action, especially if you are receiving little or no income from your investments. We could buy your property in a matter of days, for a highly competitive price.