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Developers woo would-be landlords with guaranteed rental incomes...

     Belvoir, Britain’s biggest lettings specialist, with a franchise in Milton Keynes warns would-be landlords to check the small print before being seduced by ‘guaranteed rental’ offers. 

     Stagnation in the residential sales market has resulted in house builders across the UK offering a range of incentives to potential buyers and investors in a bid to shift some of the many empty properties they are currently finding difficult to sell.

     One such incentive is the ‘guaranteed rental’ scheme where landlords are being promised guaranteed rentals at fixed yields if they invest in a new build property on a buy-to-let mortgage. Such offers are now available across a range of different properties and are also being used as an incentive to help sell properties off-plan.


     Steve Tunney of Belvoir Milton Keynes says “Investing in property to let is still a very smart move if you do your homework and get it right and there are certainly some great deals out there for landlords at present. However, Steve points out some of the potential pitfalls as well as offering advice when looking at such deals:

- Check how long the ‘guaranteed rental’ period is for and if it will still be achievable at the end of the period.

 - Is the whole development or a considerable number of properties being sold to investors on such a scheme? bear in mind that once the period of guaranteed rental income is over there will be a lot of landlords all chasing the same tenants.

 - Compare the purchase price with similar properties in the area to ensure you are not covering the cost of the ‘guaranteed rental’ income in an inflated purchase price.

 - Read the small print and find out the exact details of the incentive scheme – costs such as services charges, furnishings etc are deducted from the ‘guaranteed rental’ income.

 - Talk to local lettings specialists to find out typical rental values and tenant demand in the area

 - Always consider whether the property is an attractive investment over the longer term.


     Steve Tunney, advises investors to proceed with caution when considering ‘guaranteed rental’ deals. “Such incentives might appear to offer the investor peace of mind and ease of financial planning but anyone considering entering the buy-to-let market is advised to speak with the experts first and get an objective opinion about the local market and opportunities,” says Steve.


For further information on the subject, please contact Steve Tunney at Belvoir! Milton Keynes on 01908 562582 or via email at miltonkeynes@belvoirlettings.com


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