UK property investments

Buy-to-let investment property

A buy-to-let property investment is one of the most popular ways for investors to generate profit within the UK’s booming property market. Possessing a rental property can generate impressive passive income, capital appreciation or capital growth – all of which can be elevated through careful planning and consideration. The traditional buy-to-let strategy entails renting out a single unit to one household, ranging from a family to a professional individual, which enables landlords to predict their returns and manage their properties more easily. However, landlords who own multiple properties can more flexibly maximise their yields to earn a long-term income.

An advantage of property investment is the ability to adapt and amend property assets as trends and markets change. It is crucial that investors conduct thorough research of their target tenant type and their wants, needs and ideal locations in order to avoid loss of revenue and void periods.. Additionally, investors maintain the right to select when, where, and how their properties operate dependent upon their target tenant type and market conditions. This flexibility means that landlords can invest in refurbishments, extra amenities, and upgrading facilities as tenants’ needs change. Having this adaptability means that property owners can customise their property portfolio to meet their specific interests by selecting the rental costs, choosing the ideal tenant type, and dictating the level of refurbishment carried out and how the property is managed.

Is buy-to-let a good investment choice?

Currently, average yields across the country are high, indicating the strength of the buy-to-let industry. Landlords targeting leading cities can expect to achieve between 6-12% in rental yields in top-yielding postcodes.

The private rented sector has been performing best in the south-west, north-west and north-east of England, while the south-east and London are trailing behind with the lowest returns. The fact remains, however, that certain locations in the region are more likely to be successful than others. This is why selecting properties in thriving cities with high average rents and impressive yields is so important.

Investing in properties that are strategically located and generating solid returns over time will provide a steady source of income to landlords, particularly those who have a wide variety of property types. There has never been a better time to invest in buy-to-let (BTL) properties in the UK due to the ever-growing population and the need for rented housing. The UK has a rapidly growing population and a growing need for rental properties, which has made investing in BTL properties more desirable than ever.

BuyAssociation specialises in locating investment properties in up-and-coming markets with substantial potential for growth. We concentrate heavily on the north-west with Manchester at the heart of our services; however, our opportunities branch out across emerging towns and cities in the country. The properties we acquire from top developers are discounted, high-quality and in areas that are attractive to investors and potential tenants. They range from modern city centre apartments to rustic units buried within the UK’s most favourable rural areas.

HMO property investment

An experienced investor in the property market might prefer to diversify their portfolio with a range of property types for additional stability and security. UK investors are turning increasingly to housing in multiple occupancy (HMO) rentals as a preferred investment property. Having thoroughly explored the benefits of HMO properties, you will understand the key advantages of expanding your portfolio with this property type.

An HMO consists of several occupied residential properties under one roof, as its name suggests. Bedsit suites or house shares may also be referred to as HMOs. It is important to note that HMO policies should not be confused with joint tenancies since the definition of an official HMO property is legally defined. Simply put, an HMO building will comprise separated rooms that are let on a room-by-room basis, where occupants form more than one household. Most commonly occupied by young professionals and students, these households are extremely cost-effective for tenants with less disposable income yet remain incredibly lucrative for investors.

Diversifying your portfolio with an HMO property

A multi-let property is renowned for producing considerably higher rental yields than a standard single-let property, as a result of the property’s multiple tenants paying rent per month/week. Property market analysts have concluded, in recent years, that the average HMO yields 7% in the country’s most high-demand areas, compared to the 5.5% average yield generated by traditional BTL properties. With BuyAssociation, investors can expect to earn up to 10-15% from the promising HMO opportunities we have available.

Alongside the high yields, letting an HMO property comes with additional security for the landlord. Why might this be? Well, one key reason is the spread of responsibility – for example, if a payment is missed by a tenant, there are multiple other tenants to rely on, which decreases the risk of experiencing a substantial drop in rental income. Moreover, tenant demand for affordable housing is higher than ever before, ensuring interest is always consistent.

Here at BuyAssociation, we look to identify HMO properties in locations with optimal potential for substantial returns and demand. Our property consultants conduct in-depth surveying of areas that produce optimal results for investors.. As our experts have determined that primarily young professionals and university students remain the most common tenants for HMO contracts, the locations we source developments in fit predominantly within these tenant types, ensuring that high occupancy rates will always be sustained. We have HMO investment properties situated in Salford, Bolton and South Yorkshire.