In the last decade, the buy-to-let market has seen property price increases, legislative changes, new tax treatment, and deep economic uncertainty across the country. However, most landlords will still recommend investing in property as a worthwhile investment. At the beginning of the month, we saw yet another change in legislation that is starting a new market trend.
Landlords with large portfolios will usually have several properties in need of renovation. However, renovating a property can be very expensive and will eat into the property profitability in the short term. Recent change in legislation will mean that where a property has an energy efficiency rating of F or G, then energy efficiency improvements must be carried out to bring the property up to at least an E rating.
Where some landlords see this as yet another blow to their bottom line, others are taking the opportunity to carry out further renovation work and increase the rental value of their portfolio. We have seen an increase in enquiries from landlords looking to release capital from their properties, investing the capital into renovation work, charging a higher rent and increasing the return on investment for some of their properties. This is clearly influenced by the fact that this quarter could be one of the last opportunities to obtain finance at such low interest rates.
This is a wakeup call! We are lucky to have brokers with extensive experience advising landlords on how to manage their portfolio to increase profitability now and in the future.
If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth