Buy to Let - Where and What to Buy in the UK

Apart from the need to avoid buying flats in Northern English towns like Leeds and Manchester - which are ludicrously over supplied with buy to lets already - people interested in getting into buy to let should in general go for 2 or 3 bed terraced houses with gardens as these will appeal to a wider mix of tenant types. They will rent faster.
In terms of areas, London whilst expensive should continue to do well. Rental demand remains strong here and rents are going up quickly. However, yields are stretched currently – and you would do well to get a net yield over 4% but as more people are renting and as rents continue to go up, this should improve and I don’t see house prices falling heavily here.
I also think that attractive coastal towns in Kent will benefit from improved transport infrastructure and will see prices go up. Just don’t expect great yields here because the rental market in thin due to lack of tenants and low employment levels. However, once discovered by second home owners and commuters (better rail links coming), these places will see house price growth.
On a general level, as ever, the lack of supply of property and the continued unending increase in population due to migration will push rents and house prices up long term. Sadly, lots of novice landlord will still manage to get it wrong by buying flats in areas that are either already or soon will be over-supplied by too much stock trying to chase too few tenants.
At the end of the day it’s about supply and demand!
I’ll be speaking about where to buy and what to buy at my event in London on 16th July. Click here for more information: http://www.lettingfocus.co.uk/enews/enews.html
David Lawrenson is the author of “Successful Property Letting.” Go to the main website at www.lettingfocus.co.uk Copyright: David Lawrenson 2007.