Submitted on Thursday 10th April 2008
Should you sell your Buy To Let?
With all the talk of credit crunch and possible house price drops this is a valid question.
Obviously it depends on your circumstances.
A few facts to consider. Average rents are up by between 2-4% depending on whether it is a flat or a house according to December, January and February figures from Arla. This could be partly fuelled by immigration and partly by first time buyers being reluctant or unable to buy. If rents are increasing that is a useful counterbalance to the risk of house prices dropping.
Tax is another issue as CGT rules change from April and so anybody seling needs to speak to their accountant to see if they best fit the old or the new regime
If you are holding on to your property, which most people will, as it is a long term investment, it is important to plan cashflow correctly. Increased tenant demand will help but increasing mortgage costs will not. As some lenders withdraw products from the market it is worth checking with us to make sure that your mortgage plans take this into account by locking into superior buy to let deals now.
