Why Now Might Be the Right Time to Keep Your Rental Property
Recent years have presented challenges for landlords, particularly with changing regulations and market pressures. However, for those willing to adapt, the buy-to-let market continues to hold substantial opportunity. Before deciding to sell your property, consider these compelling reasons to hold on to your investment.
Navigating the Changing Landscape
The upcoming Renters' Rights Bill and restrictions on mortgage interest tax relief may feel daunting.
But these changes offer landlords a chance to differentiate themselves by providing quality housing and excellent management practices. As the property market evolves, savvy landlords who embrace these adjustments will be positioned to thrive.
Key Reasons to Retain Your Rental Property
1. High Demand for Rentals
The rental market remains strong, with demand for properties consistently outpacing supply. This trend shows no signs of slowing, especially in desirable locations like those Nicholsons Estate Agents specialises in across Bassetlaw.
2. Rising Rents
Savills predicts that mainstream rents will grow by 17.6% over the next five years, including a 4% increase in 2025 alone. If you're considering selling, this projection highlights the potential for growing returns from your rental property.
3. Resilient Property Values
Despite market fluctuations, property values are holding firm. Forecasts suggest a 4% increase in house prices by 2025, with a 23.4% rise expected by 2029. Holding onto your property means you could benefit from this significant appreciation.
4. Improving Mortgage Rates
Interest rates are anticipated to decrease to 3.5% by early 2026, making financing costs more manageable. This shift could also create an opportunity to refinance and improve your property’s profitability.
5. Stable Capital Gains Tax
Recent budgets have left Capital Gains Tax on residential properties unchanged. For landlords worried about tax implications, this stability provides a breathing space to evaluate options.
Adjusting to the Renters' Rights Bill
While new legislation brings challenges, it could also weed out landlords who fail to meet the standards, leaving quality providers with increased demand. At Nicholsons, we stay ahead of industry changes and can guide you in navigating these reforms. We ensure your property complies with regulations while maximising its marketability.
An Action Plan for Landlords
Before making decisions about your property’s future:
Seek Professional Advice: Consult your accountant and financial advisor to understand the tax and financial implications of selling or holding onto your property.
Maximise Returns: Partner with a trusted estate agent like Nicholsons to explore strategies for boosting your rental income and reducing tenant turnover.
Embrace Expert Marketing: With our use of Matterport virtual tours, professional photography, and a robust social media presence, we position your property to stand out and attract premium tenants.
Nicholsons’ Commitment to Landlords
Our SecureMove method ensures that property sales and lettings are seamless, secure, and stress-free. Whether you're buying or retaining rental investments, our bespoke marketing strategies and expert advice are tailored to maximise your success.
If you or someone you know would benefit from a personalised consultation, we’d be delighted to help. Contact Nicholsons today to discuss how we can support your buy-to-let journey.
For a free property valuation, contact us today by clicking on the banner below or call us in Retford on 01777 808777 or in Worksop on 01909 492299.
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Sources:
Savills Mainstream Residential Forecasts 2025-29
Capital Economics Mortgage Forecasts 2024-26