We've had a good root around in the data to see what the statistics say about our region, specifically. If you're looking for a buy to let property in the South West, there are some positive takeaways.
There are some good signs from current landlords in the South West
Tenants are staying putWhile first time buyers wait for the market to turn in their favour, they'll need quality landlords who can offer them a decent rental home. If you have the extra funds to invest, the data gives us some indication of why current landlords are feeling positive.
When we look at tenants in the South West, they tend to stay put. In fact, 40% of tenants have been renting for in total for over 11 years.
And while just over 11% had just moved in to their current rental property within the last six months, the same number have been in their current property for two years - and 9% have been in their current property for over 11 years.
Landlords are seeing decent returnsLandlords surveyed said that they entered buy to let market for rental income and to make an investment, with 39% and 37% of landlords deciding to buy their first rental property for these reasons respectively.
With those aims in mind, what does the survey reveal about the available rental yields in the South West? Well, over 28% of landlords reported a rental yield that fell within the 4.6% bracket, 25% said their yields were in the 7-10% bracket and just over 10% said they were seeing an 11-15% yield.
Are recent barriers to entry here to stay?We mentioned the struggle of first time buyers, which recent Government drives have tried to address - at the expense of landlords. But Kate Faulkner, known for her work on the Future Homes Commission, offers her expert opinion.
"By this time next year, I believe there will be a realisation that this anti-landlord policy is flawed... As a result, I think the next year or so will continue to be rough for landlords, but in a couple of years' time it will get better."
Expert help is best place to startBefore you set your sights on a buy to let property, setting up a holiday let or start thinking about finding a long term tenant, it's important to establish clear goals. There may be positive takeaways from the survey but getting expert advice from your IFA is always the best place to start.
Pop in to your local Parkers office for more helpful information.