Is Now the Right Time to Sell Your Buy-to-Let Property in Poole? Think Again!

As letting agents being lucky enough to be based in beautiful Poole, Dorset, we are unfortunately speaking with landlords more and more often who are disenchanted with all the new legislation and are contemplating the sale of their buy-to-let properties. While selling might seem like a tempting option in a fluctuating market, there are several reasons we believe to stop and reconsider your first thoughts. With mortgage rates likely to decrease, a growing demand for rental accommodation, and a steady increase in local property values, now may not be the right time to sell.

Potential Decrease in Mortgage Rates

One of the most significant factors influencing landlords’ decisions is the interest rate landscape. If the mortgage advisers we speak to regularly are to be believed, current projections suggest that the rates are likely to decrease in the coming months.  Those landlords whose mortgages have needed to be reviewed over the last year have found themselves in the position of having higher borrowing costs than they are used to. However with the rates starting to move downwards again, this means the possibility of securing a more favourable fixed rate mortgage deal, can significantly improve profit margins. If you’re feeling the pinch of tighter margins, we believe that with your next review things will improve and a lower interest rate could provide much-needed relief and make your buy-to-let property a more lucrative investment.

Increased Demand for Rental Properties

As we’ve seen, the rental market in Poole is thriving. With many landlords leaving the market, the demand for rental properties has surged. It is well documented by the online portals that there are approximately 15 – 20 applicants for every rental property and therefore any void periods should be at an absolute minimum.  On average tenancies in Poole tend to last 22 – 26 months and over a three year period therefore we are currently experiencing a void rate of just over 1%.  Conversely the average time it is taking to sell a leasehold apartment even after an offer has been received is between 4 – 6 months.

The current rental vacancy rate for the whole of  Poole is remarkably low, hovering around 2.5%. This means that if you choose to hold onto your property, you’re likely to find tenants quickly and maintain a steady cash flow. With the demand for quality rental accommodation higher than ever, your investment could pay off significantly in the coming months.

Rising Property Values

Property values in Poole have shown consistent growth over the past few years. According to the latest data, Poole has seen an annual increase of approximately 5% in property values, making it one of the more resilient markets in Dorset. If you were to review your portfolio and decide to sell your property now, you might miss out on future appreciation. Holding onto your property could allow you to benefit from this ongoing upward trend in values, ultimately leading to a more profitable exit strategy down the line.

Building Long-Term Wealth

Investing in property is not just about immediate returns; it’s about building long-term wealth. By holding onto your buy-to-let property, you not only benefit from rental income but also position yourself to take advantage of future market conditions. As the value of your property hopefully increases over time, your investment could yield much higher returns over time.

Tax Considerations and Benefits

It’s also worth considering the tax implications of selling your buy-to-let property. Selling could trigger capital gains tax, and the potential benefits of remaining a landlord—such as tax deductions on maintenance costs, and property management fees—may outweigh the advantages of cashing out now.

So the decision to sell up is ultimately a personal one, the current market conditions in Poole suggest that holding onto your investment could be more beneficial than you might think. With mortgage rates likely decreasing, increased demand for rental accommodation, and property values on the rise, the case for staying in the game is stronger than ever.

If you’re uncertain about your next steps, don’t hesitate to reach out. As your local letting agent we are here to provide guidance and support tailored to your unique situation. Let’s work together to ensure your investment continues to thrive in this dynamic market!