How you can save £12,000 by investing in a new-build buy-to-let

 

High quality accommodation in the private rented sector attracts the best tenants and can generate the highest yields, as non-decent rental homes become a thing of the past.

New research has revealed that the percentage of “non-decent” homes being privately rented in the UK has fallen by almost a fifth, down to 24.5% during the last 10 years. While this still means that almost a quarter of rental properties are in need of attention, according to the ONS in research published by InterBay Commercial’s, the vast improvement shows how attitudes and standards are changing across the industry.

Over the same time period, the sector has ballooned by around 45% as people rent for longer before they buy, and renting over the long term and into later life becomes more normalised. As demand for rental property continues to climb, landlords are competing to attain the best tenants and keep their properties occupied.

The research by InterBay revealed that landlords spend an average of £12,000 refurbishing their rental properties, with 70% doing so to generally improve the property they were offering, and 45% carrying out improvements in the hope of increasing the property’s value or rental yield.

Darrell Walker, head of sales at InterBay Commercial, said: “It may be an easy target for political point-scoring, but the private rented sector has been a success story since the financial crisis, catering for a growing proportion of the population that either cannot or chooses not to purchase a home.

“As the PRS has grown, it has also professionalised. As it has done so, the standard of accommodation for tenants has improved drastically too.”

Alternatives to refurbishment

By investing in a new-build, or newly converted or renovated project, landlords can save themselves the refurbishment costs. Common improvements made by landlords include things like insulation, replacing boilers and improving kitchens and bathrooms. None of these improvements are necessary with a new-build, and the fact that most aspects of the property are brand new will mean that no significant amount of money should need to be spent on refurbishment for a long time.

Brand new properties are also hugely enticing to tenants, who are more than ever looking for high quality, attractive and often more energy-efficient accommodation that they can call home. A property with smart home features, a state of the art kitchen and bathroom and newly fitted decor will appeal more than an older home, and also require less upkeep.

Even if the property isn’t newly built, the number of conversions taking place across the country is on the rise, with many ex-commercial period properties being turned into modern rental apartments. These carry the added benefit of having character which many people look for in their home – whether or not they own it.

Investing in new property

At BuyAssociation, we introduce investors directly to developers with major projects going up across the country. Investments are made off-plan, either while a development is being built or when it is still in its planning stages, meaning competitive prices and excellent potential for capital appreciation as well as rental yields.

From new-builds to full-scale renovation projects, all our investments are completed to a high standard, meaning investors and landlords – as well as owner-occupiers – won’t have to worry about refurbishment costs for a long time.

With some projects close to completion, and others at the very early stages, we’ve got something to suit most investment goals. Have a look at our investments page to see some of our most recent projects.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

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How you can save £12,000 by investing in a new-build buy-to-let

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