How To Invest In UK Property

If you’re considering how to become a landlord in the UK, the answer is relatively simple. You just need to buy a property and let it out to a tenant for a monthly return.

As the asset has grown in popularity, many people have also found themselves as ‘accidental landlords’, inheriting houses or buy-to-let properties that they start renting out.

Depending on the property you let, you may need a license to do so. This largely depends on where you’re letting or if you’re letting a house-in-multiple-occupation (HMO).

Finally, you’ll need to consider the responsibilities you’ll have as a landlord. Many of these are mandatory and required to make sure that you’re being legally safe.

At this point you may consider working with a property manager or a letting company to help you look after the day-to-day.

If you were to measure how ‘good’ a buy-to-let investment is based on its past performance, this asset would probably come out on top. However, different assets will suit some more than others based on their financial goals.

If you’re looking for a resilient asset that can offer a passive income as well as the opportunity for capital growth, buy-to-let property could be the best asset for you.

With 8.9% price growth in the UK on the horizon, along with 15.9% increases in rents by 2027, forecasts suggest that buy-to-let property could be the route to financial freedom for many investors.

Is buy-to-let worth it?

When it comes to investing there’s generally no ‘one size fits all’ approach and buy-to-let property will suit some investors more than others.

However, for those who are looking for a long-term investment asset with a track record of competitive growth and more price increases on the horizon, buy-to-let is often the best option.

Buy-to-let is a flexible investment assets and can offer diversification across a wider portfolio. It’s historically one of the most stable assets and is much less exposed to external factors, plus it’s a physical asset, which makes it appealing with certain investors.

The answer to ‘is it worth it?’ depends entirely on how you use it. If you use it as a long-term asset, it’s proven to be a potentially lucrative investment vehicle that can be scaled effectively.

For those that want to know how to start investing in property, the most successful investments often start with a clear financial plan.

By understanding your investment goals, you’ll be able to determine which asset is best for reaching your objectives and how it can be scaled.

More specifically, this could be an asset that offers higher short-term returns or a property built for a longer holding pattern.

Once you understand this, you can start deciding on locations, property sizes and tenant demographics you might want to target.

Finally, you’ll then be able to explore finance options and partners that you can work with.

Buy-to-let is fairly self-explanatory – it involves purchasing a property with the intention of letting it to a tenant for a monthly fee.

Owning a buy-to-let property comes with a wealth of responsibilities, some of which are compulsory and some depend on how much of an active investor you are.

Being a landlord, you will be responsible for maintaining your rental property, unless you choose to go with a property management company.

Similarly, you’ll be required to find your own tenants and market the property yourself, unless you work alongside a letting company.

An investment property is bought with the intention of generating profit through either monthly rental income or capital growth on the resale of the property, whereas a regular residential property is usually purchased for the sole purpose of the buyer to live in.

The investment property can be owned by either an individual investor, a limited company or by a group of investors.

Depending on an individual’s financial plan, an investment property can be either a short- or long-term endeavour, offering immediate returns via rental income as well as capital appreciation over a longer period of time.