A LEADING East Midlands housebuilder has seen a rise in the number of people looking to invest in a buy-to-let property.
According to Barratt East Midlands, increasing numbers of first time property investors are keen to find an opportunity to get a good return on their money as interest rates remain low.
And given a recent prediction by the Association for Residential Letting Agents that demand for rental property is set to exceed supply well into 2011, investing in property appears to offer the ideal solution.
Mark Wright, mmanaging director at Barratt East Midlands, said: “Over the past few months we have seen a steady increase in the number of enquiries from first time property investors keen to find out more about buy-to-let properties at our developments.
“The feedback we are getting is that our customers, most of whom have a considerable amount of savings in the bank, are fed up of the low return they are seeing on their savings due to continued low interest rates and are looking for alternative investment opportunities which can offer a better return.
“Property remains a sound investment and landlords can expect to receive up to a seven per cent yield on buy-to-let properties. In addition, mortgage lending is still restrictive and many people are finding it hard to buy which means that demand for rental properties is still high, so investors are seeing this as a way of guaranteeing a decent return on their cash.”
New-build properties are more attractive to tenants, they are easy to maintain and Barratt’s homes come with a five year fixtures and fittings guarantee which provides investors with even greater peace of mind.
Sixty-one-year-old David Wright, pictured, has invested in his first property at a Barratt development in Ilkeston.
He said: “The interest I would get on my money in a savings account doesn’t compare to the seven per cent yield I’m getting as a landlord and so the decision to invest in a property was a no-brainer from the word go.
“Barratt was recommended to me by a friend who has already purchased at a number of the company’s developments throughout the East Midlands.
“As a first time property investor, I was attracted to a new-build as I wouldn’t need to do any work to the home, meaning tenants could move in straight away. In addition, they come with a ten-year NHBC guarantee plus the Barratt five year fixtures and fittings guarantee.”
Barratt East Midlands is currently building at Highgrove, Anglia Road, Church Gresley – two-, three- and four- bedroom homes with prices starting from £114,995; at Hallam Fields, Corporation Road, Ilkeston – three- and four- bedroom homes priced from £139,995; City Point, Atlantic Way, Derby – three-, four- and five-bedroom houses priced from £179,995; The Spires, Derby Road, Chesterfield, – two- and three-bedroom properties priced from £114,995.
To find out more call the sales hotline on 0844 811 3377 or log on to the website at www.barratthomes.co.uk.