Challenges Facing the Buy-to-Let Market

Tough new regulations and tax changes have made buy-to-let investment less attractive for some landlords. As a result, an estimated 4,000 properties per month are being sold off by small landlords exiting the market. However, for cash buyers with patience, this could present a great opportunity to invest.

Rental Demand Remains Strong

Despite the sell-off, rental demand remains high, and rental levels are holding steady in most parts of the country. This means that investors willing to enter the market could still find good opportunities—but location is key.

Best Areas for Rental Yields

New research into the best places for buy-to-let investment based on rental yields shows that Scotland leads the way. Glasgow offers strong rental returns, followed by Midlothian, East Ayrshire, and West Dunbartonshire. For those considering investment, conducting thorough research is essential.

Remote Property Management with PropTech

Landlords no longer need to live near their rental properties. Thanks to PropTech solutions like our PlanetRent app, investors can now manage properties remotely. Our technology connects landlords with partners across the UK, helping them oversee their rental investments from anywhere.

Key Considerations Before Investing

Before making a purchase, investors should consider factors that impact local rental markets, such as:

• Planned developments and infrastructure projects
• Tenant demographics (e.g., student-heavy areas may offer higher gross returns with HMOs)
• Long-term property value stability

Seeking professional advice from a reputable property agent, mortgage broker, and accountant can help ensure that your investment is both profitable and tax-efficient.

Buying at Auction – A Potential Opportunity

For investors looking for buy-to-let bargains, property auctions can be an attractive option. However, buyers must:

• Understand how property auctions work
• Be prepared to pay a 10% deposit plus auction fees immediately
• Have the remaining balance ready within 28 days

While auction purchases bypass lengthy conveyancing processes, buyers must conduct due diligence beforehand to avoid costly mistakes.