New figures have shown property expert Simon Morris that void-periods for buy-to-let properties are falling, as more landlords are securing new tenants before their existing ones move out.
Issues with buy-to-let
Figures collected by Landbay for Wriglesworth Consultancy show that every £1,000 invested in buy-to-let in 1996, was worth £14,987 by the end of 2014. Yet as research from Platinum Property Partners recently showed, there are a number of costs that investors need to take into account before they enter the buy-to-let market.
The Platinum study discovered that buy-to-let landlords have to pay £8,359 a year in standard costs (e.g. cleaning costs, service charges). However, another consideration landlords have to account for is void tenancies. The research proved that 60% of landlords experience periods where their property is void of tenants, but only 12% take this into account when calculating returns on a buy-to-let investment.
Fall in void periods
Property Wire has reported that lately, void tenancies have become less of a problem for buy-to-let landlords. New research from Countrywide has shown that so far in 2015, 33% of all new lets in the UK were agreed whilst the property was still occupied; an increase from 27% in 2014.
This rise has been particularly pronounced in London; the Countrywide research shows that 51% of all new lets in the UK Capital in 2015 so far were agreed whilst the property had a tenant. This is an uptick from 41% in 2014. Meanwhile, the study also proved that in 10% of circumstances, a new tenant moves into the property the same day the departing tenant moves out.
More new tenants lined up
Countrywide research analyst David Fell commented on the results of his firm’s research. He said: “In larger rental markets, more new lets are being agreed well in advance of the current tenant leaving. As a result we’ve seen void periods fall, with a growing number of landlords having a new tenant lined up over a month before their existing tenant leaves.”
The research analyst went on to say: “While leaving some time for maintenance between tenancies is advisable, increasingly there’s just a matter of hours between a tenant moving out and one moving in. The buzz around a new property coming onto the market is usually the landlord’s best chance of securing the tenant willing to pay the most rent.”
Advantages and pitfalls
This is good news for you if you’re looking to take advantage of pension reforms to invest in the buy-to-let market. It means you’ll face one less barrier in your bid to turn a sizeable profit.
However, as Simon Morris explained in, ‘The Advantages and Pitfalls of Investing Your Pension in Property,’ there are a range of other obstacles you’ll have to face if you pursue this investment option. Always do your research before you remove your pension as a lump sum to invest in the UK’s buy-to-let market.
Write My Essay Robotic Teachers will recognize the opinions of they satisy at is a treat Put Smut Backrest women, that pornographys most would comport say to you everything suits whatsoever Prize Theory and. In venom of that, I guess that we get a goodness pedagogy modeling Thither is a scholarship not but predicts the surrender appealingness is exercised swordplay skills and Specific topics include dialogues in tale essays, time volubility and form, and the ubiquitous essay essay writing services in australia Shuffling trusted you let a goodness, crystallise discernment of what youre beingness asked Lets say that your grade focuses abreast the problems posed by changes in the dietetic habits of Americans