Opportunities to invest in the North West
David Wilson Homes North West is urging buy-to-let investors in the North West to consider all their options as the market in the region continues to go from strength to strength.
Buy-to-let is booming again thanks to increasing demand for rented properties and the good value buy-to-let mortgages on offer. And with rents in the North West continuing to rise, the potential return on investment in the region is strong.
Steve Jackson, Sales Director at David Wilson Homes North West, said: “We have seen a revival in the buy-to-let market thanks to high rental demand and low mortgage rates. In fact, buy-to-let mortgage lending is up 18% year on year, a real sign that confidence among investors and lenders is increasing.
“Investors have a number of choices and whereas flats have previously been a wise investment, we are seeing more and more buyers looking for high-quality new houses as couples and families looking to rent, increase the demand for this type of property.”
Mark Francis, partner at Acumen IFA, added: “There has been a surge in buy-to- let activity with new and experienced landlords alike looking to purchase new build properties again. The demand for quality rental properties among tenants is very strong.
“Landlords are taking advantage of the increased competition among buy-to-let mortgage lenders, with interest rates falling and new lenders entering the market, to capitalise on this.”
While mortgage lending to landlords is at a record high as investors look to make the most of high rents, entering the buy-to-let market is not risk free.
David Wilson Homes North West therefore offers buyers a number of investment opportunities, such as its Showhome leaseback scheme, which comes with a guaranteed yield of 6%.
Through the leaseback scheme, investors have the opportunity to buy a Showhome at selected developments in the region and then immediately lease it back to David Wilson Homes North West for up to five years to use as a marketing suite.
Steve Jackson continues: “Rather than have to worry about untidy tenants, the investor knows that we will maintain the property in pristine condition. We are also the only major housebuilder which guarantees internal fixtures and fittings for a full five years, avoiding the risk that comes with being a landlord of being hit with unexpected maintenance costs.
“Investors are taking the view that the direction of house prices in the medium term is up, so they expect to be sitting on a profit in three to five years’ time.”
One purchaser to take advantage of the Showhome leaseback scheme is Nicholas Bean, from Runcorn who has recently purchased a property at Cleveland Place in Warrington. Nicholas said: “The Showhome leaseback scheme was ideal as I live and work abroad. It means I can make the most of the benefits of buy-to-let and have an investment back home without any of the worries of having a tenanted property, which would be an issue, not living close to the property.”
Showhomes are currently available from David Wilson Homes North West at the following developments: Ascot Gardens, Widnes; Babylon Field, Chester; Elmtree Grange, Merseyside; Hawley Gardens, Blackpool; Heritage Park, Stoke; Kingsway, Rochdale and Wepre Green, Flintshire. Prices start at just £135,995 for a modern three bed property.
David Wilson Homes is part of Barratt Developments PLC. For more information on the Showhome leaseback scheme visit barratthomes.co.uk/showhome or for details on any North West development visit dwh.co.uk.
