Is now the right time to invest in the BTL/HMO property market?

With more changes being implemented in the buy to let space earlier in the year, many are asking, is now the right time to invest in the Buy To Let(BTL) or House of Multiple Occupation (HMO) property market? 

As most people with an interest in the BTL/HMO market will be aware, the world of the private landlord changed with the introduction of Section 24 of the Finance Bill in 2015. These changes came into force in 2018 and have had a marked effect, with many buy to let landlords choosing to exit the market altogether.

The combination of more stringent lending criteria around BTL mortgages and, more importantly for many, the termination of mortgage tax relief for landlords, has meant that many investors are taking a long look at the BTL/HMO before continuing to invest.

However, a recent report by Knight Frank suggests that by 2021 a quarter of all homes will be privately rented, a figure that equates to almost 6 million households.

This suggests that demand for accommodation will continue to grow and that now could be the perfect to time to plan and implement your long-term BTL/HMO investment strategy.

It is not coincidental that large investors such as Legal & General have started ‘build to let’ projects to take advantage of this opportunity. The build to let space, currently estimated to be worth £25 billion today, is forecasted by Knight Frank to be valued at £70 billion by 2021.

Whichever way you look at it, the opportunity for BTL and HMO landlords is significant for those in a position to capitalise. A key part of that positioning is in gaining the correct financial advice.

In a fast-moving environment such as the BTL and HMO marketplace, there are deals to be done both in terms of acquiring the right properties at the most attractive prices, as well as gaining finance on the best terms for you.

These terms go far beyond the best mortgage rates for BTL and HMO properties. A seasoned and experienced broker firm, such as Cornerstone Finance, will be able to select a range of lenders with the most appropriate lending criteria for your overall needs.

Whether you’re an experienced property investor or new to the BTL/HMO market, a call to Cornerstone Finance could make all the difference in your BTL/HMO return on investment.

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