Investment strategies in property

Historically, investing in property’s been a great way to make a strong and sustainable second income. Buy-to-let was particularly popular with those looking to invest their savings. Rental contracts meant they could expect a dependable passive income, even during economic downturns. And soaring property prices meant that buy-to-let investors booked jawdropping profits when they eventually came to sell up. But conditions have become a lot tougher for private landlords over the past decade. So I’d forget buy-to-let. Here, I’ll reveal what I think’s a much better way to make money from the UK property market. Fading appeal let’s quickly look at why buy-to-let’s become increasingly unattractive with Britons. The Tenant Fees Act in 2019 brought in measures like transferring certain costs from tenants to landlords, and capping deposits. The restriction of mortgage interest relief and higher stamp duty on second properties has also had an impact.

Property owners have faced higher mortgage costs since the Bank of England began hiking interest rates. The effect of all of this has been big. According to price comparison website Finder, the average landlord in April made £4,000 less a year in profit than in 2020, despite monthly rents shooting steadily higher. Potential changes to rental legislation could impact investor returns further down the line. Since the war in Ukraine, nations everywhere are scrambling for energy independence.