The study found in England, two-bedroom properties are the best option for buy-to-let landlords. These properties offer an average yield of 4.8% in comparison to the 4.1% return offered by a one-bedroom property, a 4.5% return for three-bedroom properties and a 3.6% average yield for four or more bedrooms.
There is a lot for landlords to consider
While expected yield is important information for landlords to consider, it is far from the only factor. You need to consider who you wish to let to. It may be a two-bedroom property isn’t the best option for your preferred style of tenant, or your preferred location. We are pleased to say we are local property market specialists, and we are here to ensure you find the property, and tenant, that is best for your needs.
Calum Brannan is the CEO of Howsy, and he said; “As a landlord, maximising the profitability of your buy-to-let investment is as vital now as its ever been and property size and type are as important as location when it comes to doing so. While the two-bed property is traditionally the most popular amongst tenants and landlords due to the additional size without going overboard on costs, there is a slight regional variation in the capital.”
London rental market stands alone from the rest of the country
The London property and rental market are often viewed separately from the rest of the country. As Calum said; “This is of course, due to the high rents you can secure in London even on a one bed and the overwhelming demand for properties that have seen even the smallest ‘studio flats’ rent for above-average prices.”
Miles Shipside is a director at RIghtmove, and he spoke about the rental market in London, saying; “The increasing rents in London reflect that demand has been exceeding supply. When the Government introduced higher stamp duty on second home purchases back in 2016, it deterred many landlords from investing in the buy-to-let market, which in turn has exacerbated this ongoing dearth of available properties, and we’re yet to see any significant boost in stock from the many build-to-rent programmes.”
There are challenges in the London rental market, but there is demand from tenants, and opportunities for landlords. We aim to provide you with guidance and support that helps you make an informed decision.
If you are a landlord looking to let property in South West London, please get in touch. We can arrange a property valuation, which provides you with confidence in entering the market. We can also help you connect with tenants who are looking for the property you have to offer. Contact Holmes Estate Agents today to ensure you care for your rental property and tenants.