Tunbridge Wells, in particular, is a superb place to buy a property to rent out. As far as towns go, it is a pretty safe bet because, well, it’s a great place to live. The demand for rental properties here is extraordinarily high. It is only a 40 minute or so commute into central London and if you are lucky enough to get your hands on a house or apartment near to the station, you can command rental prices well above the average. The schools in the area all have excellent reputations and there is plenty of green space. All in all, Tunbridge Wells is the perfect location for would-be landlords to invest in.
Ok, so now we know why Tunbridge Wells and Tonbridge are the ideal placed to buy, we need to look at why now, in the middle of a global pandemic, it is a good time to buy to let.
House prices are rising
The pause button was hit on the property market during the height of the pandemic, but since restrictions have been lifted, the market has seen a surprising but certainly not unwelcome boom. Halifax reports that the average house price rose 1.6% in July from June, £241, 600. It was the first increase in more than five months. It is a slower growth than normal, but a sign that normal service is beginning to resume. This is what makes it a great investment NOW before they rise even further.
Ah, stamp duty. Every property buyer’s nemesis especially on buy to let properties or second homes. It can add a significant cost to the purchase of a property, but at the moment, stamp duty has been reduced, giving you an opportunity to make some savings. However, you need to pull your finger out if you want to take advantage of this - it is only in place until March 2021.
This year has seen a record number of prospective tenants looking for properties to rent. The average letting agent registered 97 new tenants in July 2020, as opposed to the previous record of 88 in February. Demand is unlikely to drop any time soon - if anything, is going to keep on going, so you can almost guarantee a tenant straight away in the current market, especially for those 2 & 3 bedroomed houses.
The average rental price for a property in Tunbridge Wells and Tonbridge stands at £1,205 PCM. That’s way, way above the UK average of £886. Get a property close to a good school, the railway station or one of the big parks and you could probably get more than that. That’s not a bad return on your investment at all, is it?