Some people have made a fortune out of buy-to-let properties, whilst others have ended up with overpriced properties with rents much lower than expected.
The Government has recently announced that from April next year the amount paid to housing-benefit recipients, of whom 1.4 million rent property in the private sector, will be capped. This means many landlords are going to be faced with a choice of either lowering the rent for benefit tenants or trying to find new, private tenants.
At the height of the buy-to-let boom there were approx 3,650 buy-to-let mortgage products. Today the figure is down to 300 and the number of people taking out new buy-to-let mortgages is just 25% of what it was three years ago.
There is, however, some good news. Firstly the number of people taking out buy-to-let mortgages is on the increase (only slightly). Secondly demand for privately rented accommodation has never been stronger. Countrywide Lettings reported an unprecdednted influx of potential tenants last autumn.
For more information on buying rural property to let talk to the team at Barbers Rural