If there is one thing which can be said about buying homes in the UK, it would be that there is a severe shortage of rental properties anywhere you go. As a result, many real estate investors are buying up as many previously owned homes as possible for the buy to let market. In fact, most experts say that the housing shortage isn’t likely to ease any time in the near future so if you are looking into investing in buy to let previously owned homes, now would be the time to do so. There is one fact you should also be aware of. Experts all state that millennials are driving up the buy to let market in single family dwellings.
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Unlike generations of the past, millennials seem to have no interest in owning their own homes. Although there is no simple answer to why that should be, it appears as though this generation wants greater freedom from responsibilities along with the ability to be more mobile than generations in the past. millennials are also quite conscious of environmental issues and as a result, many prefer to live in previously owned homes while also buying previously owned furnishings so as not to deplete our natural resources any more than we already have. However, other experts believe that the reason millennials aren’t interested in owning homes because they believe they can’t afford them.
When it comes to buy to let properties, hiring an experienced conveyance team of solicitors is always the smartest thing to do. For example, referrals from Quittance Legal Services can help you find solicitors in your area who know the market and are better able to explain any housing authority rules and regulations you might be violating if you buy a home to let out. Some associations expressly forbid renting homes in their authority and so you would be spending money on a property with no hope of a return unless you turn around to sell it again for a profit.
Once your conveyance solicitors have determined that the property is a freehold and not a leasehold, you can safely assume that it can be rented out for a residual income over time. However, that may not be possible either. Even though a home may be unencumbered and free to be sold, it doesn’t mean that rental properties in the area are fetching a high enough rent to make sense for a good return on your investment. This is something most reliable conveyance teams will do for you as part of their service. Comparing cost per unit and potential returns on your investment should be something your team will do for you.
While it is said that the UK needs to build four million homes within the next 15 years to keep up with the housing shortage, it doesn’t appear to be a realistic goal. Since stepping up onto the housing ladder is more difficult for millennials (without the help of their parents) than at any time in the past, it makes sense to invest in buy to let properties that millennials can afford to rent but not buy. Is there any better reason to snatch up these properties as quickly as possible? If you find one, that’s all the more reason to take advantage of what appears to be a great future for the buy to let market. That’s what you need to know.
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