Is it a great time to buy a rental property
What will happen to the housing market as restrictions start to be lifted?
Covid-19 had and will continue to have a huge impact on Britain’s housing market, which for some landlords could be a huge benefit. Taking the emotions out of situation and looking at basic economic facts shows that for many landlords Covid-19 long term could be very profitable. Assuming they have the cash flow to ride any losses from not being able to evict bad tenants.
Let’s look at the situation with impartiality. House sales were for effectively banned for six weeks during our the strictest part of the lockdown and even now with many still not comfortable letting people into their homes it is still a tough market. You have those for personal reasons in desperate need to sell.
However as with many industries the level of uncertainty is making the financial institutes nervous as they cannot predict the future. House prices for the next twelve to eighteen months could go in any direction several times over.
Will we see buyers and sellers and finance houses implementing Covid clauses and if so what will that entail?
For landlords that are cash rich, it could be there market with Nationwide raising the minimum deposit to reduce their risk and factor in the current uncertainty of the market.
A savy landlord might partner up with a property developer and take advantage in the dip in land prices and build to let.
However where will all the tenants come from? If the predicted job losses materialise when the government stops paying wages?
Overall if a landlord is in a position to purchase buy to let properties, is now one of the best times in recent history?