Uncovering the Truth: Is Leicester's Buy-to-Let Market Still a Lucrative Investment in 2023?

While some landlords have exited the market due to increased costs and regulation, the same survey found that 11% of landlords, representing 15% of tenancies, are planning to expand their portfolio. This shows that landlords with multiple rentals are still seeing the financial benefits of property investment and recognise opportunities in the market.

According to Zoopla, house prices increased by an average of 21% between March 2020 and August 2022, while flats increased by 9%. Average prices are predicted to fall between 5% and 8% in the coming months, offering opportunities for investors to buy property at below market value. Even if prices fall further in the short term, they are expected to recover in the medium term and be higher in five years.

As an investor, it's important to view buy to let as a long-term investment and plan to hold property for at least 15 years to ride out the market's natural peaks and troughs. Creating a buy to let property investment strategy is crucial to weigh the pros and cons and determine if it's the right investment for you.

Creating a buy to let property investment strategy is crucial to weigh the pros and cons and determine if it's the right investment for you.

According to Dechlan Connell, Lettings Manager at First 4 Lettings:

"Investing in buy-to-let properties remains a good opportunity as the demand for rental properties continues to grow. However, you must adhere to private rented sector regulations. I advise landlords to work with a reputable agent like First 4 Lettings to minimise stress, maximise rent and ensure compliance with increasing regulations. You should view your property investment as a business and value your time accordingly."

2023 offers excellent opportunities in the buy-to-let market. Contact us today!

 

 

 

Written by First 4 Lettings

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PERMITTED PAYMENTS

As well as paying the rent, you may also be required to make the following permitted payments:

1) Holding Deposit: Up to one week’s rental

2) Deposit: One month’s rental (5 weeks rental dependent on individual’s circumstances)

3) Payments for utilities (gas, electricity & water), communication services (telephone & broadband), Installation/Subscription of cable/satellite, TV licence and council tax

4) Default Fee (late payment of rent): If full Rent is not paid within 14 days or more of the Rent Due Date there will be a charge 3% plus the Bank of England base interest rate of the full rental amount until full payment is received

5) Default Fee (breach of tenancy agreement, any other permitted payments, under relevant legislation including contractual damages): For any breach of the tenancy agreement based on the reasonably incurred costs of the agent or landlord

6) Replacement of keys, fobs or other security devices

7) Default Fee (changes to the tenancy): An administrative charge of £50.00 or greater for any assignment, variation or novation of the tenancy agreement made at the tenant’s request (only if agreed by The Landlord and/or The Landlord’s Agent)

8) Payments in respect of early termination of a tenancy agreement at the tenant’s request


TENANT PROTECTION

First 4 Lettings is a member of Client Money Protect which is a client money protection scheme, and also a member of PRS (Property Redress Scheme), which is a redress scheme.