Undoubtedly COVID-19 has been the largest challenge the rental property market has had to face in recent years, but aside from the pandemic this market has faced smaller unprecedented challenges and has changed dramatically, so is it still a viable investment choice? Big Roar, a property investment firm with offices in both London and the East Midlands looks at the pitfalls and successes of the market and how it has changed.
The lockdown that caused the entire property market to temporarily cease has had a knock-on effect with buy-to-let landlords, particularly with the pressure they faced during lockdown if their tenants were unable to pay rent due to changing financial situations. The lockdown caused many buy-to-let landlords to cease their growth plans or in some cases reduce their portfolio to stay financially viable. However, despite these challenges wider research shows there are promising times ahead and these next few years can provide plenty of opportunities providing landlords are agile.
Buy-to-let property investment should generally be seen as a mid to long term investment strategy to take into account peaks and troughs in the rental market, new regulations, trends in rising property prices and the recent stronger shift towards rented accommodation.
The number of householders occupied by private rented in the UK from 2000 to 2020 has more than doubled from 2 million to over 4.55 million, with a slight decrease in 2020 in which it is highly likely the worldwide pandemic had a part to play as it affected the majority of sectors and every day lives globally for the past year.
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