Huddersfield landlords are becoming progressively more self-assured about expanding their rental portfolios; as Huddersfield rents rise, mortgage interest rates fall and demand for decent Huddersfield rental properties outstrips supply.
A number of reports nationally would suggest around a third
of UK ‘portfolio’ landlords (i.e. landlords with more than one rental
property) are actively looking to expand their rental portfolios in the
next 12 to 18 months, that would locally mean …
1,725 Huddersfield ‘portfolio’ landlords are looking to
add to
their rental portfolio by the end of 2022.
The pandemic has had a substantial change to what we want
from a home. Many people think that relates just to homeowners, yet nothing
could be further from the truth as it also applies to tenants.
Homeowner or tenant, many of us have spent a lot of time away
from places of work. Many office workers face the outlook of the combination of
working from home as well as at the office, meaning a change in what people
look for in their home. People (including tenants) are looking for larger
properties, with extra rooms for office space and decent sized gardens or to be
closer to outside green space.
So, let’s look at the ‘scores on the doors’ as to why Huddersfield
landlords are on the up …
Huddersfield house prices are 24.7% higher than 5
years ago.
Because some Huddersfield first-time
buyers are being priced out of the market due to these house price rises, they
are being forced back into the rental market. Add the extra demand of the 1 in
10 Huddersfield house sellers who, in the last 12 months, have had to go into
rented accommodation instead of buying, and this has created increased demand,
meaning …
Rents today in Huddersfield are 7.2% higher than a
year ago
and 16.4% higher than 5 years ago.
The average rent of a Huddersfield property today is £762
pcm.
In previous articles on the Huddersfield property market, I
was talking about the lack of properties to buy – yet that issue is also there
in the British rental property market. Now let’s look at the supply of rental
properties.
Would it surprise you that the number of private
rented homes in the UK has fallen in the last 12 months by just over 2.5%?
Why? One reason has been many ‘accidental’ landlords have
used this housing market to sell their property for a good price. That means
the supply of available rental properties has decreased. The perfect storm of
increased demand and lower supply, and with many Huddersfield tenants competing
for those larger Huddersfield homes, they may find Huddersfield rental prices pick
up even more over the next year.
What about buy-to-let mortgages for Huddersfield
landlords?
The banks all but withdrew from buy-to-let lending in the
first lockdown. Yet, since last summer things have settled down and during 2021
there has been a mortgage price war.
Huddersfield landlords can borrow 60% of the value of their
BTL property on a two-year fixed rate of 1.18% from Platform and even those
with a 20% deposit (that’s borrowing 80%) can borrow that money at 2.49% 2-year
fixed rate from The Mortgage Works. Those looking to fix for a little longer
can get 1.44% from The Mortgage Works and 1.79% at 75% loan to value from
Santander.
(It must be noted there are some fees to these mortgages,
and you must take advice from a qualified mortgage advisor before deciding
which mortgage is best for you).
So, is now the best time to invest in Huddersfield
buy-to-let property?
If you are attracted to invest in Huddersfield buy-to-let,
it’s vital to do your homework first – particularly if you are new to the game.
When estimating the expected rental returns on investment,
capital growth and yields, many Huddersfield landlords look to what has happened
with house prices and rental prices, yet past performance does not always
deliver a future guaranteed return.
Smart Huddersfield landlords will speak with agents like
myself and others in Huddersfield, prudently researching the Huddersfield
property market to discover what types of properties are in high demand (and short
supply) from tenants.
Whether you are a landlord of ours or not, please feel free to
drop me a line via email or social media for no nonsense advice on the
important matters to look out for before investing in Huddersfield buy-to-let.
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