The upsurge in house sales across Yorkshire has been so strong that it has become one of the first places in the UK to bid farewell to “accidental landlords”.
During the economic downturn, these were the property owners who turned to renting out their properties because they could not sell them for the price they wanted or within the timescale they needed.
According to leading residential sales and letting specialist, Linley & Simpson, this is yet another positive signal of the strength and speed of the turnaround in market conditions.
The independent agency – with an 11-strong branch network covering West and North Yorkshire’s most prized places to live – said this has opened an unprecedented window of opportunity for investors to exploit.
To help their quest for the right property, the company has launched a dedicated ‘buy-to-let’ feature to its website. For the first time, it enables investors to search solely for properties that Linley & Simpson has already vetted to be ideal investment opportunities and giving them an indication of likely returns.
“There is a growing shortage of rental properties across Yorkshire as a result of the recent upsurge in property sales and purchases,” said director Will Linley.
“This has in turn marked the end of the customer we would refer to as ‘accidental landlord’ – someone who would let their property out because they could not find a buyer.
“This extinction of the accidental landlord has created a gaping hole in the supply of rental properties. And it is one which canny investors – who now include those savers aged over-55 able to cash in their pensions for the first time – can fill to their advantage.
“Never has there been a better time for landlords to expand their portfolios. or start one, with a view to injecting some much needed stock to a currently extremely buoyant rental market.”
There are several types of property that are very high in demand and low in supply that buy-to-let investors should be targeting across North and West Yorkshire:
- One and two-bed terraced/town houses at rentals typically between £525 per calendar month and £700 pcm – popular among couples with and without young children.
- Two and three bedroom semi-detached houses/town houses/terraced houses at rentals typically between £700pcm and £950pcm
- Three and four bedroom semi-detached/detached/ terraced houses at rentals typically between £950pcm and £1150 pcm.
Houses of the above type/size generally cost in the region of £150,000 to £300,000 and are likely to deliver an annual gross investment yield of 4.5 per cent to 5.5 per cent – far higher than savings rates offered by the banks and building societies.