August saw an incredible month for the Buy-to-Let market with research from Connells Survey and Valuation showing an oveproperty-increaserall increase of 12.7%.

The UK Buy-to-Let market accounts for 1 in 5 properties, providing an attractive investment opportunity offering growing and sustainable rental yields.

The percentage increase suggests that the recent amendments to the tax and stamp duty implications for Buy-to-Let landlords were a short term concern, and do not undermine the potential benefits of operating such a business.

The last few months have seen several big question marks over Buy-to-Let and the property industry as a whole, with the largest being Brexit. Fears are calming, and have certainly not impacted on the growth seen here, in fact; some domino effects have benefited the Buy-to-Let industry.

The Bank of England cutting the base rate in August not only instilled confidence in the market but also assisted in bringing the cost of Buy-to-Let mortgages down by 8% over the past 6 months, essentially reducing outgoings and increasing potential profitability.

There are also further potential silver linings on the horizon for Buy-to-Let. One of the implications of the amendments to recent legislation was the reduction in mortgage interest relief for landlords. Housing minister Gavin Barwell has recently met with campaigners looking to get this overturned through a judicial review which is due to be decided over the coming weeks.

Economists are also predicting the Bank of England to announce a further cut to the base rate in November, potentially decreasing from 0.25% to 0.1% offering a chance that mortgage costs could fall further.

mike-outside-new-office-crop2-2x3All in all, it’s a very exciting time to be in the property market. If you are interested in letting your property, we would welcome the opportunity to introduce ourselves and our service as knowledgeable and experienced agents in your area.

If you are looking to expand into the lettings market and would like advice on letting your property, or on any other aspect of letting, please contact us on 01252 514000 or lettings@mackenziesmith.co.uk, we look forward to speaking with you.