With 9,156 people in Private Rented Properties in Boston – Should you still be investing in Boston Buy To Let?
If I were a buy to let landlord in Boston today, I might feel a little bruised by the assault made on my wallet after being ransacked over the last 12 months by HM Treasury’s tax changes on buy to let. To add insult to injury, Brexit has caused a tempering of the Boston property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Boston property prices do drop, the downside to that is that first time buyers could be attracted back into the Boston property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Boston landlord, almost a blessing in disguise.
Boston has a population of 40,878, so when I looked at the number of people who lived in private rented accommodation, the numbers still surprised me …
|Boston – Accommodation Type and the Number of Occupiers|
|Owned outright||Owned with a mortgage||Shared ownership (part owned and part rented)||Social rented (aka Council Housing)||Private rented||Living rent free|
Yields will rise if Boston property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Boston landlords add to their portfolio.
Rental demand in Boston is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Boston landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.
“Many of the what would be potential buyers in this age bracket were now planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property.”
Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters. Does this finding contradict the Governments announcement only this week that first time buyers “have their noses pressed up against Estate Agents windows wanting to buy but not being able to”
So, as 22.4% of Boston people are in rented accommodation and, as that figure is set to grow over the next decade, now might just be a good time to buy property in Boston – because what else are you going to invest in? Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch – there is nothing like bricks and mortar!