Investment Property News

From the 6^th of April 2015, ‘Pension Reform Day’, new rules will allow those aged over 55 to draw down some or all of their money to invest in options such as a buy to let property. The requirement to buy an annuity will be removed and pension savers will have greater flexibility in accessing their pensions.

Since the birth of the buy-to-let mortgage 18 years ago in 1996, buy-to-let investments have provided average returns that easily outstrip those of other major asset classes.

Every £1,000 invested in an average buy-to-let property purchased with a 75pc loan-to-value (LTV) mortgage in the final quarter of 1996 would have been worth £13,048 by the final quarter of 2013, providing a compound annual return of 16.3pc, according to research by specialist lender Paragon.

With an ever increasing number of TV programs dedicated to property sales the majority of home sellers are now aware of the influence presentation can have on sale prices and the time required to secure a sale. What is perhaps not so widely known, and demonstrated, is that the presentation of a rental property is equally as important.

An HMO (house in multiple occupancy) is a property that is shared by three or more tenants who aren’t members of the same family. HMO landlords must have a licence from the council for every HMO. This ensures that the property is managed properly and meets certain safety standards.