The Leeds Buy to Let property market in May 2021  

May has been a great month for the Leeds property market!

On the whole, the market seems to have calmed down slightly and as expected, we’re seeing the demand for properties start to return to ‘normal’ levels. As a result, we have been able to secure more sales in May than in each of the previous 2 months.

While some people forecast a dip in house prices over the coming months, we anticipate that for the types of houses we are purchasing for BTL investment, there will instead be a reduction in the rate of increase, with the current level setting a new norm in prices.

The challenge now shifts to increasing material and labour costs for refurbishment projects. Prices have increased by 20-30% over the last 6 months, with supply chain issues causing shortages on materials and an increase in project lead times.

While these changes are bound to cause some short-term challenges, property, as a long-term investment, is still a core pillar of any investment portfolio and we don’t believe that there will be a fundamental shift in investment habits over the next decade.

Buy to Let Sales Update

The property market seems to have achieved a better balance over the last month, with demand starting to drop and properties finally starting to come onto the market. This has largely been caused by the opening up of communal and indoor activities as well as a successful vaccination roll-out, helping sellers feel more relaxed about having people in their homes.

Prices have only just started to reflect the supply-demand reality and properties have still been selling for over the asking price. With seller looking to capitalize on the buoyant market, it has continued to be challenging, but our team have managed to agree 4 excellent new purchases this month.

We anticipate that demand will continue to subside over the coming months as the frenzy caused by the Stamp Duty holiday comes to an end. We have had to reset some of our clients’ expectations around timescales, but we still believe it is better to find the right property at the right price, than just trying to get deals over the line.

Leeds Buy to Let Mortgage Update

Mortgage rates continue to be competitive for both limited company and personal name purchases over the month of May – below are the current best rates.

Mortgage Rates | Lifestyle Property People

Leeds Lettings Update

The demand for rental properties has continued to increase with properties renting for well over the amount we estimated when we carried out the initial due diligence on the property. As well as increasing rents, the increase in demand has meant that there are multiple applicants for the same property, allowing us to choose the best quality tenants too.

Both of these effects have supercharged our clients’ returns, but we continue to be cautions in our estimates, allowing us to under-promise and over deliver. Below are some examples of the rental increases we’re seeing.

3 Bed Expected: £650 Achieved: £795 +22.3%
2 Bed Expected: £650 Achieved: £750 + 15.83%
2 Bed Expected: £625 Achieved: £725 + 16%
2 Bed Expected: £575 Achieved: £650 + 13.04%

If you want to find out how we can help you get started on your property investment journey, register your interest today!

May has been a great month for the Leeds property market!

On the whole, the market seems to have calmed down slightly and as expected, we’re seeing the demand for properties start to return to ‘normal’ levels. As a result, we have been able to secure more sales in May than in each of the previous 2 months.

While some people forecast a dip in house prices over the coming months, we anticipate that for the types of houses we are purchasing for BTL investment, there will instead be a reduction in the rate of increase, with the current level setting a new norm in prices.

The challenge now shifts to increasing material and labour costs for refurbishment projects. Prices have increased by 20-30% over the last 6 months, with supply chain issues causing shortages on materials and an increase in project lead times.

While these changes are bound to cause some short-term challenges, property, as a long-term investment, is still a core pillar of any investment portfolio and we don’t believe that there will be a fundamental shift in investment habits over the next decade.

Buy to Let Sales Update

The property market seems to have achieved a better balance over the last month, with demand starting to drop and properties finally starting to come onto the market. This has largely been caused by the opening up of communal and indoor activities as well as a successful vaccination roll-out, helping sellers feel more relaxed about having people in their homes.

Prices have only just started to reflect the supply-demand reality and properties have still been selling for over the asking price. With seller looking to capitalize on the buoyant market, it has continued to be challenging, but our team have managed to agree 4 excellent new purchases this month.

We anticipate that demand will continue to subside over the coming months as the frenzy caused by the Stamp Duty holiday comes to an end. We have had to reset some of our clients’ expectations around timescales, but we still believe it is better to find the right property at the right price, than just trying to get deals over the line.

Leeds Buy to Let Mortgage Update

Mortgage rates continue to be competitive for both limited company and personal name purchases over the month of May – below are the current best rates.

Mortgage Rates | Lifestyle Property People

Leeds Lettings Update

The demand for rental properties has continued to increase with properties renting for well over the amount we estimated when we carried out the initial due diligence on the property. As well as increasing rents, the increase in demand has meant that there are multiple applicants for the same property, allowing us to choose the best quality tenants too.

Both of these effects have supercharged our clients’ returns, but we continue to be cautions in our estimates, allowing us to under-promise and over deliver. Below are some examples of the rental increases we’re seeing.

3 Bed Expected: £650 Achieved: £795 +22.3%
2 Bed Expected: £650 Achieved: £750 + 15.83%
2 Bed Expected: £625 Achieved: £725 + 16%
2 Bed Expected: £575 Achieved: £650 + 13.04%

If you want to find out how we can help you get started on your property investment journey, register your interest today!