Rents rise but landlords still need to keep an eye on costs
A new survey from HomeLet reveals that UK rents hit a record high of £970 a month in August, up 2.4% on the previous year. What is interesting is that this comes at a time when landlords are facing higher tax bills and extra costs as a result of the letting fees ban and other regulatory changes.
Encouragingly for investors, higher rents are not restricted to certain parts of the country – the HomeLet figures show growth in rents in every region of the UK, ranging from 0.2 to 3.5 per cent. HomeLet suggests the reason behind this growth is that savvy landlords are trying to recoup higher costs, while there is high demand for rental homes as people still struggle to afford to buy. Wage growth and high employment levels have also forced up rents.
Making sure you aren’t paying more than you absolutely need to for your buy-to-let is a vital part of getting the best returns from your investment. It doesn’t matter how much you charge in rent, if your funding is not competitively priced you won’t be generating as much income as you could. It therefore makes sense to check in regularly with your SPF mortgage broker, to ensure that your buy-to-let is performing as well as it could be. Your broker will let you know if it makes sense to stick with your current arrangements or whether you would be better off switching products and/or lenders.
Competition between lenders is strong, which in turn is leading to some great buy-to-let mortgage rates, including these rates currently available through SPF Private Clients.
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