Is buy-to-let worth it in 2022? Or is it time to sell? There are pros and cons to both. As with anything, it is, in part, situation dependant. Covering mortgage costs whilst also having a regular source of income has, of course, long since made buy-to-let a popular investment option. It would be naïve however to say that buy-to-let in 2022 hasn’t become significantly less attractive for the average landlord…
Buy-to-let 2022: The gloomy reality faced by landlords and tenants
The prevalence of landlords leaving the market poses a somewhat bleak outlook (at least for the immediate future). Many landlords have been hit by tax law changes, essentially forcing them to sell. Couple that with suggested rent controls, the abolishment of Section 21, issues surrounding affordability (with rising costs likely to impact upon a tenant’s ability to pay – and affecting landlords personally too): both landlords and tenants are facing hard times.
Buy-to-let 2022: Structural problems create more dark clouds
It can be hard for many to forget that landlords are just normal people. Far from the greedy, capitalist and (mostly) undeserved reputation that landlords seemed to have acquired, the truth is that most landlords are just individuals, often with jobs too. With around 50% of landlords owning just 1 rental property, the most common reason for tenants leaving is their existing landlord selling up.
It has been forecasted that we are set to lose around 3,800 buy-to-let landlord properties per month in 2022. If these predictions are accurate, we are looking at doubled figures from 2 years ago. Just as tenant demand is through the roof. With rents having reached a record high last month, it’s naturally going to become more difficult for tenants to save for a deposit. This can only further perpetuate the problem. It’s difficult to see how without major policy change, the situation can improve.
Does this mean you should sell up?
Not necessarily, no. It’s not your problem of course, but a critical shortage of rental stock can only mean 1 thing. Bad news for tenants (and the PRS at large). However, riding out the storm as a landlord, however bleak the situation may appear, could just turn out to be the best decision you ever made.
Buy-to-let 2022: Getting the best yields
Whether you are considering buy-to-let for the first time or are an existing landlord; location is key to success. Whilst it’s understandable you might want to live near your rental property, you are running a business. We can help you get the best ROI wherever you are, but don’t miss out on the opportunity to become more profitable. Here are some of the current hotspots.
Here to help you make the right Choices
Are you a landlord considering buy-to-let in 2022? Did you know, we offer all our landlords a year’s worth of rent upfront? Not only that, but we operate a nationwide service, meaning you can take advantage of that cash lump sum in combination with our first-class property management, wherever you are. Calculate how much you could get here. Get in touch here.