Buy to Let Investment Guide

Free Buy to Let Investment Guide

Buy To Let Property Investment Guide

Enter Details to Download Now

Why Choose Buy To Let in 2019 and 2020?

Buy to let property investment is one of the most attractive options for those looking for a way to gain long term financial security. When faced with the decision between unstable investment classes and a fluctuating stock market, the UK’s buy to let property market often comes out on top. When done right, buy to let investment can generate a consistent income that allows investors more financial freedom, even into retirement.

If you’re interested in investing in buy to let and you want to find out more about how to invest in property for lucrative returns, take a look at this informative buy to let guide on why you should choose UK property investment in 2019 and 2020.

We specialise in buy to let residential and student properties, offering our clients the most exciting and profitable investment opportunities on the market

Julian Ramsden, RWinvest

Buy to Let Property Investment

block-img

The UK Housing Market

House prices in the UK are growing at a rapid pace, with data compiled in April 2018 revealing an annual increase of 3.9%. Certain areas in the UK, such as Liverpool, are leading the way with this property growth, having reached a huge 7.5% increase by the end of 2018.

A lot of homeowners in the UK have benefited massively from rising house prices and capital appreciation over the years. Ever since the introduction of the 1988 Housing Act’s Assured Shorthold Tenancies, the property market was opened up to buy to let investors, creating the potential for an accumulation of wealth outside of people’s day to day careers.

In many cases, this decision to invest to let was very profitable, especially when you look at house price growth. Research by the Telegraph revealed that investing in a run-down UK terraced house with two or three bedrooms in 2012 generated a market value of 180,000 by 2014 for one clever investor.

block-img

House prices and rental costs are on the rise throughout the UK, with the north-west region standing out above the rest. Cities like Liverpool and Manchester have attracted attention from savvy investors from around the globe due to the impressive rental yields and affordable property prices on offer.

The demand for rental properties is a factor that’s contributing to the success of the buy to let market. As of mid-2018, demand for rental property reached new heights as the number of properties available for rent fell.

With the majority of millennials being much more likely to rent than buy, the demand for rental properties from young professionals is sure to remain strong for many years to come. Experts predict that the build to rent sector is expected to be worth a huge £70 billion by 2022, making 2019-2020 the perfect time to begin your buy to let journey.

block-img

The North/South Divide

If there’s one thing that constantly comes up when discussing the UK property market, it’s the divide between the North and the South. While London has long been the first point of call for many people looking to invest in property in the UK, the state of London’s property market over 2018 has led many to start questioning whether it’s worth choosing London for their next buy to let investment venture.

Highly priced properties, declining rental prices, and resultingly low rental yields are a few of the reasons many are steering clear of investing in London property. Unless an investor investigates the areas in London that are expected to see some growth further down the line, they’re unlikely to make the kind of returns they’d hope.

The North, in comparison, gives investors a much better chance of making a lucrative investment. Property hotspots like Manchester boast average rental yields of 5.55%, while London’s average is a mere 3.05%, leaving investors with little to no returns after investing in buy to let.

block-img

The divide between these two areas is made obvious when you consider the average cost to buy a property in London compared to the North. According to Savills, for a two-bedroom flat in London you can expect to pay just over £500,000, whereas, in Manchester, the same price can get you a six-bedroom house with enclosed gardens and a large driveway and garage.

The affordability of Liverpool property, paired with increasing rental costs of 2.65% in 2018, has generated some highly impressive rental yields in the city and attracted a lot of interest from those who want to invest in buy to let. Liverpool boasts an average rental yield of 5.05%, with yields in certain postcodes going as high as 11.79%.

In 2017 and 2018, record numbers of Londoners were reportedly leaving the capital and moving up North. A total of 10,200 people moved to Manchester from London in 2017, with around 30,000 of the total of London leavers in mid-2016 to 2017 being in the age range of 25 to 34.

With more people leaving the capital, many of whom are likely young professionals, the demand for high-quality city centre property is dwindling in London compared to the North. Liverpool and Manchester saw high rates of demand throughout 2018, and with the popularity of the North as a place to live, work and invest, this demand is likely to continue for many years to come.

Find your Ideal Investment Property

Start Search

The UK Property Market in 2018, 2019 and 2020

Property Investment Checklist

 

Interested in investing in one of our buy to let properties for sale in Liverpool and Manchester? Read the information on our property investment checklist first to make sure your buy to let investment runs smoothly.

 

1. Understand the buy to let process

Property investment is a big commitment, so before going forward with your investment, make sure you’re fully clued up on the process.

2. Research the best locations

Have you looked into the best areas for property investment? Research the locations that offer properties within your budget and the best return on investment.

3. Think about your target tenant

The type of tenant you want your property to appeal to can dictate the location and property type of your investment, so spend some time deciding who your target tenant is.

4. Consider the responsibilities of being a landlord

Being a landlord brings a lot of responsibility. Research the in’s and out’s of being a landlord to ensure this side of the buy to let process runs smoothly.

5. Get clued up on financial issues

Last but certainly not least, ensure you’re aware of the financial elements involved with the investment to avoid any nasty surprises further down the line.

Frequently Asked Questions about Buy to Let

Below are answers to some of the most frequently asked questions we hear about buy to let property investments.

Buy to let investment is considered a good venture compared to other investment types. Unlike stocks and shares, the physical nature of property means you actually own bricks and mortar. So, if the market changes or property prices fall you can hold on to your property until it is worth more again.

There are many reasons to invest in buy to let, and specific properties from different buy to let investment companies have different advantages for different people. Due to the wide variety of buy to let properties available, you can find one that fits your goals perfectly, whether it is high monthly payments, long-term capital appreciation or a quick renovation project.

Rental yields tell you how much money you are making from the investment property you have purchased in the form of a percentage. To calculate a rental yield, you need to take annual rental income and divide it by the purchase price of the property. The higher the rental yield, the quicker your investment will pay for itself.

This is an important calculation for working out how much income you can make from investing in buy to let. A property’s rental yield is the annual rent received on a property as a percentage of its market price.

Whether you are an investment veteran with a bursting portfolio or a novice who wants to dip their toe into the waters, to make the best investments you need to be sure that the numbers add up.

The areas with the best rental yields in 2019 and 2020 will be similar to those of 2018. Liverpool and Manchester will continue to lead the way, while other Northern cities and towns are also expected to grow. Student properties continue to provide some of the highest rental yields, along with residential city-centre properties.

For property investors in the UK, there are increasing opportunities to invest in student towns and cities. Many graduates are deciding to stay in the same city they studied in after they graduate, boosting demand for rental property further and increasing rental yields. Properties in city centres, close to amenities and university campuses or workplaces are perfectly positioned to benefit from growing rental yields. With the north-west continuing to outperform the rest of the country, more and more investors are expected to seek out profitable buy to let properties for sale in Liverpool and Manchester.

While UK property investment was strong in 2018 as a whole, certain types of property have been more popular than others. Off-plan property, new builds, and purpose-built accommodation have all gained traction in recent years, and are expected to remain some of the most sought after property investments in 2019 and 2020.

Off Plan Properties

Off-plan properties are essentially homes that are not yet complete but are still available for investments. Many investors choose to buy off plan property as they gain a range of attractive benefits that they wouldn’t otherwise get with another property type such as a period property.

One of the main selling points of off-plan properties is the capital growth potential. Since an off-plan property is still in the development stage, there’s a chance that the property could increase in value even before it’s complete. The likelihood of this is even stronger in areas with existing capital growth potential such as Liverpool and Manchester, where there’s also a high demand for new rental properties.

One quality that new builds and off-plan properties share is the fact that tenants will be the first, or one of the first, to rent the property. Not only this, but newly built properties are also a lot more eco-friendly, saving around £629 a year on energy bills. Since a lot of young people are now becoming more conscious of environmental issues, buying an off-plan invest to let property is a good idea for investors that want to attract this type of tenant.

Student Accommodation Investments

Purpose built student accommodation is another booming market when it comes to property types, and one of the most popular types of buy to let property for sale in the UK. In 2018, levels of student accommodation were higher than the historic five-year average, reaching £1.9 billion in quarter one and quarter two. Home to some of the best universities in the world, the UK welcomes high numbers of students year after year, including those from overseas.

Liverpool and Manchester have a combined student population of over 160,000 and remain some of the most popular UK student cities. This means that the high demand we saw for student accommodation in 2018 is expected to continue into 2019 and 2020, making student property investment an excellent prospect to consider.

Is buy to let a good investment compared to other ventures?

Buy to let investment is considered a good venture compared to other investment types. Unlike stocks and shares, the physical nature of property means you actually own bricks and mortar. So, if the market changes or property prices fall you can hold on to your property until it is worth more again.

There are many reasons to invest in buy to let, and specific properties from different buy to let investment companies have different advantages for different people. Due to the wide variety of buy to let properties available, you can find one that fits your goals perfectly, whether it is high monthly payments, long-term capital appreciation or a quick renovation project.

What are rental yields and how do I calculate them?

Rental yields tell you how much money you are making from the investment property you have purchased in the form of a percentage. To calculate a rental yield, you need to take annual rental income and divide it by the purchase price of the property. The higher the rental yield, the quicker your investment will pay for itself.

This is an important calculation for working out how much income you can make from investing in buy to let. A property’s rental yield is the annual rent received on a property as a percentage of its market price.

Whether you are an investment veteran with a bursting portfolio or a novice who wants to dip their toe into the waters, to make the best investments you need to be sure that the numbers add up.

Which areas will have the best rental yields in 2019 and 2020?

The areas with the best rental yields in 2019 and 2020 will be similar to those of 2018. Liverpool and Manchester will continue to lead the way, while other Northern cities and towns are also expected to grow. Student properties continue to provide some of the highest rental yields, along with residential city-centre properties.

For property investors in the UK, there are increasing opportunities to invest in student towns and cities. Many graduates are deciding to stay in the same city they studied in after they graduate, boosting demand for rental property further and increasing rental yields. Properties in city centres, close to amenities and university campuses or workplaces are perfectly positioned to benefit from growing rental yields. With the north-west continuing to outperform the rest of the country, more and more investors are expected to seek out profitable buy to let properties for sale in Liverpool and Manchester.

Which buy to let property type to invest in?

While UK property investment was strong in 2018 as a whole, certain types of property have been more popular than others. Off-plan property, new builds, and purpose-built accommodation have all gained traction in recent years, and are expected to remain some of the most sought after property investments in 2019 and 2020.

Off Plan Properties

Off-plan properties are essentially homes that are not yet complete but are still available for investments. Many investors choose to buy off plan property as they gain a range of attractive benefits that they wouldn’t otherwise get with another property type such as a period property.

One of the main selling points of off-plan properties is the capital growth potential. Since an off-plan property is still in the development stage, there’s a chance that the property could increase in value even before it’s complete. The likelihood of this is even stronger in areas with existing capital growth potential such as Liverpool and Manchester, where there’s also a high demand for new rental properties.

One quality that new builds and off-plan properties share is the fact that tenants will be the first, or one of the first, to rent the property. Not only this, but newly built properties are also a lot more eco-friendly, saving around £629 a year on energy bills. Since a lot of young people are now becoming more conscious of environmental issues, buying an off-plan invest to let property is a good idea for investors that want to attract this type of tenant.

Student Accommodation Investments

Purpose built student accommodation is another booming market when it comes to property types, and one of the most popular types of buy to let property for sale in the UK. In 2018, levels of student accommodation were higher than the historic five-year average, reaching £1.9 billion in quarter one and quarter two. Home to some of the best universities in the world, the UK welcomes high numbers of students year after year, including those from overseas.

Liverpool and Manchester have a combined student population of over 160,000 and remain some of the most popular UK student cities. This means that the high demand we saw for student accommodation in 2018 is expected to continue into 2019 and 2020, making student property investment an excellent prospect to consider.

What do we offer?

Hands Off
Investments

Below Market
Value prices

High Rental
Returns

Potential for
Capital Appreciation

Regulated by

Find us on