Why keep your buy to let property?

With the cost of living impacting on most people in the UK, those with buy to let properties may be feeling the pinch and may be thinking about cashing in and selling up. While this can produce short term financial gain, there is more to be gained by keeping hold of your investment properties and thinking about ways to maximise your money.

One in five UK adults is currently renting a property, so that’s a huge pool of potential clients for your buy to let.

The market is currently advantageous for landlords, and those with buy to let properties in fantastic order are seeing increased margins from renting. Private rental prices paid by tenants in the UK rose by 3.6% in the 12 months to September 2022, up from 3.4% in the 12 months to August 2022, and so landlords who hold their nerve through the good and the bad in the property market can realise more profit.

Deciding to keep hold of your buy to let property or properties means that you will benefit from the increase in house prices that the UK is currently experiencing. UK average house prices increased by 15.5% over the year to July 2022 (gov.uk). This is the highest annual inflation rate the UK has seen since May 2003, and while growth may falter in the near term, the longer term prognosis is that your money is safer in bricks and mortar. Once you do decide to sell, you will have made a decent profit.

If you are thinking about selling to raise much needed capital, you may have the option to remortgage your buy to let property, releasing equity and taking out a tax-free cash sum. You will only pay capital gains if you sell the property.

If you’re considering selling your buy to let properties because you’re struggling to keep on top of new legislation, insurance requirements, understanding costs and what you can and can’t claim, it is worth talking to an experienced letting agent. A good agent can offer expert advice and guidance on all aspects of owning and realising capital gains from a buy to let property, and will take on the hassle of the day-to-day management.

We have decades of experience in the South East's rental markets, and have guided hundreds of landlords. Contact our branches to find out how we can help you to maximise your buy to let property.