The RLA said many people starting out in buy to let are unaware of changes in legislation which could seriously affect their investments and investors should follow the advice of industry experts.
Investing in property can offer high yields and capital growth for both novice and professional investors who are willing to put in the time and effort to see it through. As one of the most lucrative investment options, with annual yields of over 6 per cent, there are many people who want to take their first steps into buy to let.
Chris Town, chairman of the RLA, advised: “A newcomer who does limited research into the buy-to-let market will be at a disadvantage. It’s a professional environment and fingers can get burned if the right homework isn’t done.
“Speak with industry professionals and, especially, investigate regulations that may affect your property. For example, Houses in Multiple Occupation (HMOs) are now subject to new and fairly stringent legislation and amenity standards, including complex licensing regulations, laid down in the new Housing Act. And this can even affect parents investing in student property for children to share with friends during their years at university.
“The best advice is to register with the Residential Landlords Association, whose members own over 100,000 properties in the UK private rented sector, and get the benefit of their legal and financial advice and professional support as well as essential training on how to avoid common problems of managing your investment properties and tenants.”
The resurgence of buy to let activity has been particularly strong since prices started rising again towards the end of 2005. Across the country, investment in rental property has increased due to the high tenant demand for the right property in the right place. With demand currently exceeding supply, prices are pushing upwards and adding to the increased demand for rental properties for aspiring first time buyers who choose to rent until they can afford to buy.
