Is Now the Time to Invest in a Buy To Let Property?

By Mel Cindil - 28 September 2022

Now might be the right time for you to explore the buy to let market. Since the pandemic struck two years ago, the mass exodus from London has seen inner-city residents fleeing in search of greener, open spaces which has resulted in an increased demand for all types of rental properties in Essex.

Below we have provided some statistics and analysis below to help you decide if the concept of buying an investment property appeals.

Over the last 12 months, the average rent achieved for properties let in Essex was £1,095 per month. This is a 7% increase on the previous 12-month period. This is well above the national average which shows just a 3.2% increase. In Essex, 54% of properties let in the past 12 months were flats, achieving an average rental value of £951 per month. Houses achieved an average of £1,308 per month with 22% of tenants aged between 25 and 29 but the average age of renters in Essex is 35. The above statistics demonstrate that it is an excellent option to invest in buy to let properties in Essex.  

Recent figures show that the property market is showing no sign of slowing down, and with more people choosing to rent, buy to let properties generally are proving to be a sound investment due to the monthly income generated and capital growth potential as the value of the property continues to rise over the medium to longer term. Buy to let mortgages have levelled out during 2022, although they have seen an increase since those of 2019 and 2020. Buy to let mortgages have doubled since September 2020, with landlords (both new and existing), taking advantage of the increasing demand for rental properties. It is also certainly highly advisable to seek expert mortgage advice before investing in a buy to let property especially as interest rates are continuing to rise.

Whilst central London is in demand again since Covid regulations have relaxed, suburban areas, particularly over the Essex London boarder and into the Essex countryside are also witnessing residents seeking a better work-life balance. This is resulting in an increase in rental properties in the Essex region, providing investors with the potential for strong returns. With properties on the market to suit all budgets and attract a varying scope of tenants, there is plenty of choice for those wishing to invest in buy to let properties as a secure investment, with the further option of building a portfolio in the future.

In short, purchasing a buy to let property is still one of the most popular ways of investing. At Beresfords we have worked across the region for over 50 years and retain a specialist department who offer bespoke advice in terms of what and where to buy. For more information see our buy to let section.