If you are considering an investment in a buy to let property in Mansfield or the Sutton in Ashfield area, in our opinion there has never been a better time to do so. There are three main reasons for this:
1) Affordable property prices
Despite the meteoric rise of property prices across the country, and recently in the East Midlands in particular, there are still some fantastically affordable homes available in the area. Well-built, two and three-bedroom terraced houses in and around Mansfield can be found on the market from as little as £50-£60,000. Semi-detached family homes can still be secured from £90 to £120,000. This offers incredible value to families looking to move into the area, especially for professionals commuting to Nottingham, Sheffield or Leeds. As a buy to let investment, a local property will set you back far less than the equivalent in the south of the county. Furthermore, with prices in the area set to rise over the coming couple of years, investors can expect an impressive gain in equity when they come to sell on their property.
2) Availability of new properties
The East Midlands is in the fortunate position to be somewhat sheltered from the ‘property drought’ affecting some parts of the country, especially London, the south-east and north-east areas of England. In these areas, demand for property is outstripping the number of new houses that are becoming available on the market. On the one hand this is further bolstering house prices in the regions affected, but it also has the potential to trigger a slowdown in the rental market, as potential tenants choose to buy property themselves rather than pay increased rents. Therefore, for a buy to let investor, a ‘property drought’ is a very mixed blessing. Currently, the housing market in North Nottinghamshire doesn’t show any signs of this problem, with plenty of high quality, affordable housing coming available to keep up with demand.
3) Best ever yields from buy to let properties
Perhaps the most compelling reason to invest in a buy to let property are the incredible returns available from this kind of investment at the moment. According to industry averages published in January, average returns for landlords in England and Wales have increased by 12% since January 2015. In terms of money in the bank, this is a nationwide average of £21,988 gross income over the past year (before mortgage payments, maintenance cost and other deductions are taken into account)
With the financial prospect for landlords looking healthier than at any time for two years or more, and with plenty of affordable and desirable properties available, now is the time to consider your buy to let investment. As prices begin to creep up again after the winter slow down, the sooner you make your investment, the higher returns you are likely to yield, both in terms of increased equity and income from rents.