What Will 2017 Hold for Inverness Landlords?
2017 is likely to be a challenging time for buy-to-let landlords in Inverness following a number of apparently anti-landlord fiscal measures introduced by the UK government, but in spite of this buy-to-let continues to be an attractive investment at a time of low saving rates and stock market volatility.
Despite the introduction of the stamp duty surcharge on investment property, the scrapping of the ‘wear and tear’ allowance, the pending removal of landlords’ mortgage interest tax relief from next year, and the fact that Inverness rents are not rising as quickly as in some other locations, we are finding that investors continue to be drawn to the buy-to-let market. By and large returns from property routinely outperform those of other investments.
According to investment website Lovemoney.com, investment experts have identified Inverness as one of 5 buy to let investment hotspots in the UK. Good news if you’re a landlord in Inverness, but let’s look at this a little more closely. This status is attributed to the city being a “forgotten” area of the UK overlooked by investors, spin off from Aberdeen’s oil sector and to steadily increasing house prices excluding fist-time buyers and steering them instead into the rental market. But in this assessment a key reason for Inverness’s vibrant rental market has been overlooked.
What sets Inverness apart and makes it an excellent buy to let location, are the city’s thriving medical, life sciences and renewables sectors. These steadily attract professional staff to the city – staff with two notable but distinct approaches to housing: They either see Inverness as a long-term home and so want to put time and care into finding a family home to buy, renting for a year or so first, or they realise that their stay in Inverness will be a transient one as part of their career path and so have no wish to buy.
These are ideal tenants – affluent, responsible and mature in outlook. They can afford to rent well and they are looking for quality – quality of accommodation and quality of management. Properties need to be well appointed and managed to consistent professional standards. Landlords who recognise this and can meet those requirements will do well.
We at Simply Let wish you a happy, healthy and successful 2017.