The RLA said property investors should follow the advice of industry experts, especially as many are unaware of changes in legislation that could seriously affect their investments.
Chris Town, chairman of the RLA, said: “A newcomer who does limited research into the BTL market will be at a disadvantage. It’s a professional environment and fingers can get burned if the right homework isn’t done.”
However, the RLA advised that investing in property could offer high yields for both novice and professional investors who are willing to put in the time and effort to see it through, as annual yields are over 6 per cent. Investment in rental property has increased across the country due to the high tenant demand for the right property in the right place.
Town added: “Speak with industry professionals and, especially, investigate regulations that may affect your property. For example, houses in multiple occupation (HMOs) are now subject to new and fairly stringent legislation and amenity standards, including complex licensing regulations, laid down in the new Housing Act.
“The best advice is to register with the RLA and take advantage of the benefit of its legal and financial advice and professional support as well as essential training on how to avoid common problems of managing your investment properties and tenants.”
Nicola Severn, marketing manager at Mortgage Trust, agreed potential landlords needed to do their research before entering the property investment market. “BTL should always be looked at as a long-term investment. Investors should consider factors like the potential for growth in the area they are buying in and if regeneration will encourage people to relocate to the area, meaning that over the long-term property prices would increase.”
