Is it doom and gloom or considered a sound investment? If we look back at 2016 with the stamp duty hike on purchasing a buy-to-let property, the reduction in the mortgage interest rate relief, and finally the government’s announcement that tenant fees should be banned, you would think so, and we haven’t seen what the full impact that Brexit and the US presidential election will have on the money markets yet! 

We sought out a local expert, Dharmesh Patadia, multi-property landlord for the last 20 years and co-founder and director of D + J Lettings, the only independent lettings agency in Hitchin, for his views on the lettings market and his advice for landlords.

Q: What is your view on 2016 and going forward?

A: It may seem like it was an onslaught on the buy-to-let sector but I feel quite the opposite. Finally, the buy-to-let sector is being recognised and this can only be good news to help improve the quality of housing and the sector as a whole. Going forward there will likely be increasing legislation and the market has slowed but I don’t see it being a repeat of the 2008 credit crunch! There continues to be the positives of the increasing rental income and capital investment growth.

Q: What about Hitchin and the surrounding villages?

A: I firmly believe there is going to be a continued demand for rented property as more people choose to live here. If they can't buy a property or find council housing, the only option will be to turn to buy- to-let.

Q: Do you think buy-to-let locally is still a good investment?

A: Despite all the taxation changes, many of our buy-to-let landlord clients are looking at increasing their property portfolio in 2017. They are taking a longer term view and believe the numbers speak for themselves. Most achieve average returns of 4%-5% (gross) compared to bank deposit accounts 0.5% -1% (gross), and coupled with rental income buy-to-let also offers property value growth, which historically has shown a steady upward movement. If we look at figures from Rightmove for Hitchin’s SG4 and SG5 postcodes for 2016, they were relatively similar for new instructions and properties marked as being let. This is an indicator that buy-to-let is strong in Hitchin and there continues to be demand for properties.

Q: What is your advice for landlords?

A: Landlords need to be careful this year and be realistic with expectations. Money is tight and we are certainly seeing signs that rents are not increasing at the levels in previous years. I recommend keeping lines of communication open with your tenants, either directly or via your lettings agent, and ensure you’re aware of their circumstances. It’s better to know if problems are on the horizon and plan accordingly rather than be surprised.

Q: What is D + J Lettings undertaking this year to help landlords?

A: We will be keeping landlords informed of how to tackle the raft of legislative changes in future blogs and we will be running several buy-to-let masterclasses on how to become a landlord with the first buy-to-let conference in Hitchin later in the year. If you are considering becoming a landlord and would like advice on how to invest in buy-to-let property, or you would like your buy-to-let properties managed, call Dharmesh Patadia, D + J Lettings on 01462 455434.