Help to Buy in Brighton

Help to Buy will have a positive impact on Brighton’s rental market in 2014 says Leaders’ David Thorne

“With a predicted surge of new buyers using Help to Buy, the government initiative designed to help borrowers get on the property ladder with just a 5% deposit, many industry commentators had forecast a significant decrease in applicants in the rental market in 2014.

The view from many critics was that a large number of young professional renters – who up until recently have only had the option of renting, living with parents or buying using gigantic deposits through the Bank of Mum and Dad – would be queuing in their droves to sign up to Help to Buy.

Yet, despite the recent introduction of phase two of the government scheme, which is certainly helping some people buy their own homes, rental demand continues to remain strong. This is partly due to high property prices. Even a 5% deposit is beyond the reach of many. However it’s also due to the fact that many people choose to rent because of the flexibility and convenience it offers. Renting enables them to move easily for job opportunities and school places, and is also a useful solution for those between owning homes or letting out their own home.

A significant number of tenants also prefer the convenience of renting and do not want the responsibility of home ownership.

As a result of the favourable market conditions, we are seeing a gradual increase in investors entering the market, looking to make the most of the attractive yields and potential capital appreciation. As second time buyers take their next step up the ladder with Help to Buy, smaller properties will become available for investors to purchase and place on the rental market. This is not only good news for aspiring landlords, but also for tenants as there is an acute need for more rental properties to satisfy growing demand.

We are always happy to give free and impartial advice on rental figures, potential yields and everything investors need to know to make the most of the market.” David Thorne has worked for Leaders for seven years and has an outstanding knowledge of the Brighton and Hove property market.

For advice you can trust on all aspects of letting, renting or buy-to-let in and around Brighton & Hove please contact your local Leaders branch:
Brighton North Laine, New Rd: 01273 675571  
Brighton, Western Rd: 01273 720714
Brighton, Fiveways: 01273 561534
Hove: 01273 321721”