In recent years, the buy-to-let market has experienced significant changes. With the introduction of increased taxation plus changes to legislation on the horizon, many landlords have decided to exit the sector, leading to a surge in the number of properties coming to market.
The increase in buy-to-let properties becoming available for purchase creates an interesting dynamic in the property market. Here, we take a closer look at the potential implications of purchasing a property that was previously tenanted.
The reported increase in the number of formerly tenanted properties coming to market presents both opportunities and challenges for buyers.
On the one hand, there will be a wider range of properties to choose from, potentially allowing buyers to find properties that suit their needs and budget more easily. Depending on the condition of the property, and whether the landlord has completed any work since tenants vacated, the price of previously rented properties may be slightly more attainable for buyers.
However, on the flip side to this, buyers should be slightly more wary of properties that were previously tenanted.
While not all rental properties are poorly maintained, there is a risk of purchasing properties that have not been looked after as well as owner-occupied properties. Landlords, faced with increased taxation and uncertainty about the future, may have prioritised their profitability over maintaining the properties and perhaps put off addressing maintenance jobs or issues.
When buying any property, it is always advisable seek professional advice and have a Chartered Surveyors carry out a survey to assess the property’s condition. The value of a Surveyor’s Survey could be even more valuable when buying a previously tenanted property as any potential issues will be brought to light to ensure that the buyer is fully aware of what they are purchasing.
The trend has been seen across the UK, including in Lancashire, the Yorkshire Dales and Cumbria, where the increase in buy-to-let properties coming to market has been noticeable.
Whilst this presents an opportunity for buyers looking for investment properties, it also comes with inherent risks. Buyers should be cautious when considering properties that were previously tenanted and instruct a Chartered Surveyor to carry out a thorough inspection and assess the maintenance history of the property. By seeking professional advice, buyers can navigate this changing market successfully.
Matthew Parkinson Surveyors offer Level 2 Surveys and Building Survey Reports. We are also on hand to advise landlords should they require Valuation Reports for accounting or tax purposes.
For more advice, please contact our team.
