Is now a good time to purchase a buy-to-let property?

Nicky Lloyd, ESPC’s Head of Lettings, shares advice for landlords who are thinking about purchasing a buy-to-let property in the current climate.

The rental market has faced a range of recent changes due to interest rates rising, the cost-of-living crisis, rent freeze legislation and a ban on evictions.  

While the impact of these challenges remains uncertain, regardless of any short-term fluctuations in the marketplace, a buy-to-let property is still a sound medium to long-term investment. With the increased house prices seen in the third quarter of 2022 and rising interest rates, it is likely that more demand will be put on the private rental sector as we see would be buyers choosing to rent. 

Consider rental yields 

With the increased house prices seen in the third quarter of 2022 and rising interest rates, it is likely that more demand will be put on the private rental sector as we see would be buyers choosing to rent. 

The private rental sector in Edinburgh saw significant growth during the third quarter of 2022 with the average rent rising by 14.7% to a new all-time high of £1327 per month 

When choosing a rental property, ideally you want to invest in a buy-to-let property which offers a good yield. You should also consider the type of property, the area it's located and the type of tenant you wish to attract. 

The best way to work out if a property is a good investment is to speak to a local letting agent who are experts in the process. Based in the centre of Edinburgh, the ESPC Lettings team of experts can provide sound buy-to-let advice and help you choose the right property based on possible rental yield and many other factors. 

When is the best time to buy a buy-to-let property? 

Traditionally, there are more properties on the market in spring so it’s a popular time to buy, and it means you will have time to make any changes to the property if you want to have it ready in time for students in September. 

However, it is a common misconception that the closer we get to the winter months, the property market goes into hibernation. In fact, fewer property listings mean that the buying process is less competitive. 

Speak to an expert  

If you’re interested in entering the buy-to-let market or are a landlord looking for advice, a new letting agent or a full property management service, ESPC Lettings can help. As a letting agent based in Edinburgh, we can assist with all stages of renting out a home, from finding the right property to sourcing tenants and property maintenance.  

Our team are up to date with what is currently happening in the local market and have the skills and expertise to provide the guidance and support you need during uncertain times. 

Get in touch with the team today on landlord@espc.com or 0131 253 2847. 

ESPC magazine

This article appeared in the December 2022 issue of the ESPC magazine. Find out more about the ESPC magazine and read the latest issue online.