Published: 20/05/2013Buy-to-let properties in Leeds offer a better investment than ever.
Although renting has become a way of life for many young professionals, for many it’s not a situation they want to be in. However it does mean that for anyone considering investing in a rental property in the Leeds area, the chances of finding tenants are higher than ever, making buy-to-let a cost-effective option once again.
Savers are finding that the returns on their accounts are pretty dismal; making the figures for investing in buy-to-let looks increasingly appealing. The demand for rental properties among young professionals unable to make that first step onto the housing ladders is rising with many having to rent during their 20s, 30s and even beyond. The average first-time buyer is now in their thirties with the age of those buying their first property without financial help being older.
Countrywide, the UK’s biggest lettings agency, released figures this week which show that the average rent in England, Scotland and Wales has risen for six months in a row, hitting the £842 mark last month. This is a 0.8 per cent increase year-on-year.
Whilst average yields (the annual rent as a percentage of the price paid for a property) are a very healthy 6.2 per cent, it is still essential to make sensible choices when it comes to choosing a property and tenants. Although young professionals are often seen as reliable tenants, it is very important adequate identity, credit and reference checks are carried out before the keys are handed over.
Remember that location is key to any successful buy-to-let investment. Rental properties in Leeds near stations tend to be snapped up and we find that properties within walking distance of Burley Park or Horsforth stations, for example, are always popular. It’s also worth considering how close a property is to local amenities such as restaurants or a gym.
Investing in a buy-to-let property in a university city such as Leeds can prove a wise investment as many young professionals settle in the city in which they studied, with many gravitating away from ‘traditional’ student areas such as Headingley or Hyde Park to Leeds city centre and the leafy suburbs of Roundhay, Chapel Allerton or Cookridge.
One final piece of advice: if you’re considering investing in buy-to-let, don’t discount a property that you wouldn’t want to live in yourself! Remember that the let-ability of a property often boils down to location and that many young professionals simply want to be within easy reach of transport to work or a couple of decent places to eat out!