Despite the recent changes to stamp duty and tax relief for landlords 2016 will provide one of the best opportunities in years for landlords to expand their portfolios in Preston due to a flat market with falling prices and an absence of competition in the local area. It is however more important than ever that careful research is carried out before taking the plunge.
Over the last couple of years the local rental demand has changed dramatically with the once buoyant terraced market reaching saturation point leading to rents in this sector falling by up to £100pcm! On the other hand we have seen a surge in demand for both family homes in good areas such as Fulwood and Cottam and fully furnished apartments especially on the Docks, City Centre for the growing corporate/young professional market .
As always with Buy To Let its important not to follow the crowd when looking for your next investment, many landlords were badly hit buying on new build developments where up to 70% of the stock was bought by investors. If you are looking to purchase new build wait until the majority of stock has been sold then speak to the sales agents on site to find out what percentage have been sold to investors. In other areas always keep an eye out for ‘To Let’ boards if they appear on a regular basis or there are large numbers of them take it as a sign not to buy!
The profile of the average tenant has also changed dramatically in recent years, renting was once seen as a stop gap to save before buying or for people between houses, we now however have a new generation of life time renters who either cannot afford to buy or have no interest in being saddled with a mortgage. Tenants now view renting as a long term proposition meaning their expectations have also changed. The days of being able to let out poorly decorated houses with floral carpets and old fashioned kitchens are long gone. To keep voids to a minimum and ensure you attract the best tenants it is crucial that properties are refurbished to the highest possible standard, ideally they should have the same internal finish as a new build regardless of the type or age of the property.
What and where to buy in 2016
Property Types Most In Demand
2 & 3 Bedroom Semi Detached & Detached Houses, Modern 2 Bedroom Apartments (Ideally 2 double bedrooms)
Most Popular Locations
Fulwood, Cottam, Winckley Square, Ashton, Penwortham, The Docks(Mountbatten Close), Barton, Broughton, Lytham
Furnished or Unfurnished
Houses – Unfurnished unless near the Hospital/Fulwood Business Park, City or the Docks where there is a large demand for furnished stock
Apartments – Fully Furnished always let quicker than unfurnished due to a shortage in supply and an increased demand from corporate tenants
Easthams & Co are the longest established Letting and Management company covering the PR & FY postcodes, we are specialists in the corporate and professional rental markets, only taking on the highest quality properties for our clients. Easthams work hard to ensure that our landlords have the lowest void periods in the area and currently collect over 99.8% of all our rents on time. We also offer our landlords advice on the best areas to invest and will accompany landlords on viewings to advise on potential rental returns and what improvements need to be done to maximise its appeal to tenants. Easthams & Co can also carry out all refurbishment work using our preferred contractors Inter Let Renovations and project manage refurbishments from start to finish at no extra cost.
To discuss how we can help you maximise the returns on your portfolio or for advice on your next investment please CALL US TODAY on 01772 654624 or 01253 708834 or 01995 676089