Buying a property
Whether you’re already a landlord or looking to take the first step on the ladder, it’s important to know the basics. When it comes to buying property, we’re often asked the same questions, so we’ve decided to put together a quick blog covering the answers.
The property ladder
In a market that’s constantly changing, there are always different pitfalls and opportunities for the buyer. From different ways of purchasing to different ways of seeking the most robust returns. Each route has its own risks, due diligence requirements, and professional support that can help you make safe, profitable choices.
Different ways to buy property in the UK
When it comes to buying property in the UK, there are several methods available to prospective buyers and landlords, each with advantages and disadvantages.
Buying off-plan:
Purchasing property off-plan means buying a property before it has been built or completed. This can offer buyers lower prices, their choice of unit and even customisation options, but it carries risks. Some of these are construction delays, changing market conditions, and fewer mortgage options. Developers sell off-plan to secure early cash flow and reduce construction financing risks, so you need to know that by buying into this route, you’re possibly buying into some of their risks.
Buying via online marketplaces or social media:
With the rise and rise of the internet, some buyers are tempted to purchase properties advertised on sites like Facebook Marketplace. Please be aware, this route is extremely high risk. Although the adverts might be authentic, they could equally well just be scams, or fake listings, and there’s no formal process to fall back on if things go wrong. If you do want to proceed through this method, always thoroughly verify sellers, never pay upfront without contracts that you’ve had checked by experts, and if there are deals that seem too good to be true… they probably are.
Traditional market methods:
This is by far the most common way of purchasing (roughly 80% of all transactions) and includes buying through estate agents, auctions, and direct sales. Estate agents provide access to vetted properties, and they also have local market knowledge and negotiation support. It’s their job, they know what they’re doing. Auctions can be good for distressed or unique properties, but require fast decision-making and cash availability i order to really capitalise on the opportunities. Direct sales can either be completed between two parties, or with the introduction of a property professional to ensure the I’s are dotted
How the UK Property Market is changing for landlords
The property market in the UK is a constantly moving feast. It’s influenced by economic and political policies, technological advances, changing buyer preferences, and a myriad of other factors. However, in our opinion, these are the top four key players that really make a diffrence:
- Rising costs and financing challenges: Increasing mortgage rates and changing legislation, such as the Renters Right Act, are impacting affordability and flexibility, especially for first-time buyers and landlords.
2. Rental market trends: Despite fluctuations in house prices, rental demand remains strong, presenting opportunities for landlords who manage properties proactively.
3. Demand for sustainable properties: Energy-efficient homes are becoming more sought after due to lower running costs and government incentives like green mortgages.
4. Technology in transactions: Fintech solutions are revolutionising property buying with smoother payments, digital identity verification, blockchain contracts, and buy-now-pay-later options for deposits.
Urpad’s guide to property buying
At Urpad, we understand the challenges and opportunities faced by landlords and buyers as we’ve been in the business for many years. The guidance we offer is almost always totally bespoke to each situation, however, if we were to ‘broad brush’ some advice, it would focus on informed decision-making and risk mitigation.
Due diligence is key: Thoroughly check the property title, condition, legal encumbrances, and local area trends. Engage qualified professionals for inspections and surveys.
Realistic return expectations: Advertised returns often seem attractive, but factor in ongoing costs like maintenance, tenant turnover, and management fees to evaluate true yield.
Who to consult for advice: We either have our own knowledge of, or have associated letting agents familiar with the rental market of most rental areas. We have great relationships with experienced landlords who are often only to happy to offer practical insights, and we also have a network of professional property advisors who can offer tailored support and management.
Avoid risky channels: Be cautious with properties marketed on social media platforms and verify all information independently. Consider off-plan purchases carefully and assess developer credibility.
Nationwide property buying expertise with Urpad:
Our network across the UK enables landlords to make informed investments and ensures professional management to maximise rental income and minimise vacancies.
Whether you’re an established landlord with a mature portfolio, or just setting out on your property journey, get in contact with our team. We cover the whole of the UK,and could be your one-stop shop for property perfection.