Yet despite this promising environment, the UK property investment market faces challenges and returns from buy-to-let is never a guarantee – remember that it’s a relatively high-risk and illiquid investment.
The Association of Residential Letting Agents (ARLA) says you should think of buy-to-let as a medium to long-term investment5. Before becoming a landlord it is important to get your sums right. Will the rent cover borrowings and maintenance costs, after allowing for void periods, for example?
In Scotland, Wales and Northern Ireland you will need to register with the relevant council as a private landlord for a small fee. In England registration is largely voluntary. But compulsory schemes are being introduced or planned in several London boroughs as well as Croydon in Surrey and Liverpool6.
In addition to this, several soon-to-be implemented tax changes were announced that might reduce the profitability of some buy-to-let properties7.