Buy To Let Updated:
Have you ever thought of letting out your home if you went on holiday? What about if you travel frequently on business, or are simply away from home on a regular basis? These are prime opportunities to make some extra cash, as holidaymakers are always looking for affordable accommodation, and the rise of sites such as Airbnb makes it easier than ever for homeowners to let out their property on a short-term basis.
And now, those in London can do the same. Up until recently Londoners were tied by laws set out in the 1970s which prevented residents from letting out their home on a short-term basis, however new measures have just been announced that will put an end to this outdated rule.
The system is set to be changed through the Deregulation Bill, which will give Londoners the freedom to rent out their homes on a temporary basis – as people can elsewhere in the country – without having to deal with additional and unnecessary red tape. The reforms are touted as being a way to benefit London's tourism industry by increasing the amount of competitively-priced accommodation available, and of course will allow families to earn extra money when they go away.
Communities Secretary Eric Pickles commented on the announcement: "The internet is changing the way we work and live, and the law needs to catch up. It's time to change the outdated, impractical and restrictive laws from the 1970s, open up London's homes to visitors and allow Londoners to make some extra cash."
It's a welcome move for those in the capital and means everyone, no matter where they live in the country, will have the opportunity to let out their homes should they wish. There are still some caveats, of course. Short-term means "short-term" – homeowners can't transform their home into a hotel, hostel or buy-to-let property, unless they go through the necessary processes – with the rules only applying to those who want to rent out their homes for less than three months.
However, it could be a great opportunity for homeowners to earn some extra cash, and might even spark the buy-to-let bug. But, those that are serious landlords – or who are tempted to be so – will still need to make additional provisions. They'll need to apply for all the applicable permissions, council permits and suitable insurances, and then it all comes down to securing the right buy-to-let mortgage.
You won't be able to keep your residential mortgage once you start letting out your property on a long-term basis, so it's vital to find the deal that can suit your circumstances. Luckily there are plenty of different options available, whether you're a first-time landlord or a seasoned professional with a growing portfolio, so check out our best buy tables to see the kind of products you can find.
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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