CONSIDERING investing in a buy to let property? Savills director, Gill Mooney, head of Savills Buy to Let Investment (Country) offers some tips on what to consider...
“Budget will obviously be a prime consideration for most investors, along with rental yield and potential capital appreciation. However, more general considerations ought to include areas where tenant demand is high. This is often influenced by the variety of local amenities such as proximity to a mainline station as well as shopping and leisure facilities and often availability of good schooling particularly schools with high international regard.
“Growth varies dramatically from area to area but Savills’ most recent research has indicated that capital values in the South East are expected to rise, on average, by up to 25 per cent over the next five years. Certainly the proximity and ease of access to central London from many towns around the Home Counties, makes a lettings investment worth consideration. When coupling the predicted rise in capital value with a similarly high expectation in lettings values, it is hardly surprising that there has been strong interest in the residential investment market over the past year.
“The next question invariably is what property type to purchase. This will be determined, quite simply, by the tenant profile within a certain area. However, as over 50 per cent of private renters are under 35, demand is probably strongest for one and two bedroom apartments, popular with young professionals. Areas such as central Henley and the surrounding villages have well renowned schools so family houses can also make very sound investments in these areas.
Richard Maby, head of Savills lettings in Henley added: “Apartments in the town centre are a very good investment for landlords. As an example, Savills is involved in numerous apartments in Perpetual House and void periods here are almost non-existent. This is because the apartments are situated in a central location close to the shops, restaurants and, perhaps most importantly, the station. They come with parking and, essentially, because our landlords have taken our advice to price them realistically, occupancy tends to be retained.”