4 Great Reasons to Invest in Buy to Let Property in Croydon

Item: 4 Great Reasons to Invest in Buy to Let Property in Croydon
Author: Rizwan Moledina

24th August 2021

Croydon, town and borough, is thriving. And it is no wonder as, with such a significant level of investment, the area has recently been named the UK’s fastest growing economy. Here’s a look at some of the large scale development projects that are currently underway or in the pipeline, which could make Croydon a lucrative place to invest in buy to let property.

Croydon Landlords Letting Property Development Property Investment

Thousands of new homes, transport upgrades and public squares all form part of the exciting plans for Croydon town centre.

The Croydon Growth Zone, set up in 2016 with the goal of creating 10,000 new homes, public squares and retail development in the town centre by 2031, comprises 46 projects, from new flats to road and parking upgrades. The Growth Zone is a partnership made up of Croydon Council, the Greater London Authority, Transport for London and central government. It consists of a 12-year programme designed to encourage private investment in the town centres to the tune of over £500 million.

Public transport investment

Great transport links are vital when choosing a place to invest in rental property. Croydon is one of the best connected areas of London, served by four rail stations: East Croydon, West Croydon and South Croydon in Zone 5, and Norwood Junction in Zone 4.

As part of the Croydon Area Remodelling Scheme (CARS), the most significant element of the Network Rail Brighton Main Line upgrade, East Croydon Station is poised to grow in size, with Government funding set to boost the platforms from six to eight. A new concourse is in the pipeline, aimed at connecting the platforms directly to the town centre. Plans also include the creation of new homes around the station, together with a series of railway flyovers with the goal of easing congestion in the area.

Norwood Junction Station is also being remodelled, allowing more trains of a larger size to stop and open all doors. The signalling system is also earmarked for an upgrade, and new lifts and footbridges will improve accessibility.

Road network improvements

Situated within the A23 corridor, Croydon links London with the south coast. It is under 10 miles from the M25, and only 15 minutes from central London and Gatwick Airport.

There are various road network improvement schemes on the agenda, including the Fiveways Scheme, as well as the aforementioned Croydon Area Remodelling Scheme.

The Fiveways Scheme will see the bridge over the railway moved west, meaning the A23 will be straightened and widened, helping to ease congestion at this notoriously busy junction. Motorists will also enjoy shorter waiting times thanks to the relocation of Denning Avenue to the north so that a second crossroads is created with Stafford Road.

These plans are set to create more than 300 metres of new cycle lanes along Epsom Road, the A232 and Purley Way, and there will be waiting areas for cycles at each junction.

Housing development

Croydon’s housing scene is set to increase considerably courtesy of a number of high-investment developments.

Essex House, the former headquarters of British Rail, is being redeveloped into more than 500 residential homes, built over offices and shops. There will be two rooftop gardens for residents to enjoy, as well as an enclosed winter garden.

Nearing completion, the Taberner House development will create 500 homes, with over 40 per cent of them being classed as affordable.

There are also plans to the tune of £500 million to redevelop St George’s Walk, which will see new shops and hundreds of residential dwellings incorporated around a large public square.

The multi-million pound Carolyn House development completes the list of Croydon housing development schemes, with 182 apartments plus retail space on the agenda.

Cultural enrichment

Following a multi-million pound makeover, the Fairfield Halls were formally re-opened in 2019 by Mayor of London Sadiq Khan, with actress Dame Judi Dench cutting the ribbon on the Ashcroft Playhouse.

The newly refurbished venue has brought a revitalised programme of culture, events, entertainment and arts to Croydon and its wider communities.

The area has also been awarded the title of London Borough of Culture 2023, winning £1 million worth of funding for cultural events.

Thinking about investing in Croydon property?

Growth in Croydon is 3.7 per cent higher than the London average. The area is also reported to have the second fastest expanding local economy in the whole of the UK, with a 9.3 per cent growth rate.

If you are considering investing in property in Croydon at such an exciting time of regeneration, why not think about protecting your buy-to-let with a guaranteed rent scheme from a Croydon property specialist?

At homes2let, we offer a full property management service with the added advantage of a guaranteed rent scheme which returns you a greater yield, whilst reducing your investment risk by guaranteeing your monthly rental payments, even during void periods.

Why not contact Croydon-based homes2let to learn more? Our expert team has specific expertise in the Croydon property investment market, and is ready to share in-depth knowledge to help you get the most out of your Croydon buy to let venture. Please feel free to get in touch today.

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Can you make money being a landlord? It’s a good question, especially as rules, regulations and tax breaks continue to change, in many cases not for the better. But with some expert insight and the right strategy, the good news is that buy-to-let investment can still be a lucrative way to create a profitable income stream. Let’s take a look at five ways to help you optimise your profits as a landlord. With demand for rental property high, and supply generally low in many areas of the UK, there is plenty to attract the buy to let investor. But the question of how to make money as a landlord will of course always arise. Here are some strategies you may wish to consider to help you get the most out of your landlord business. Consider setting up as a company Changes to mortgage interest tax relief have proved to be one of the biggest threats to landlords’ investment profitability, with higher-rate taxpayers facing more of the rough end of the stick than anyone else. For this reason, many landlords have been considering setting up as a company. This allows you to offset all your mortgage interest when calculating your tax bill, instead paying Corporation Tax on your profits. A company structure can often work well for landlords with larger portfolios. However, for those with just one or two properties, the benefits may not necessarily outweigh the costs, especially bearing in mind that a move to a company structure will require you to sell your properties to your company, which will incur a Stamp Duty liability. If you’re unsure as to the right structure for your buy to let business, be certain to take professional advice. Source and retain the best tenants A good tenant who pays their rent on time and treats your property with respect is worth their weight in gold. You’ll therefore want to invest in finding the best tenants and, when you do, hold on to them. Void periods can be very costly to landlords, but there are plenty of ways to avoid them and be a good landlord, keeping the tenant happy by ensuring you react to any maintenance requests in a timely fashion being one of them. Also, when the time comes to renew the tenancy, make sure you get your rental rate right and can justify any rent increases, as if the tenant considers it unfair, they may well look elsewhere, leaving you with an empty property on your hands. Re-mortgage to a better rate It can sometimes be beneficial for landlords with a buy to let mortgage to switch deals, particularly if interest rates have dropped since the original loan was taken out. It is generally possible to secure a new mortgage six months before the end of a current fixed term, so it’s a good idea to start looking at your options in advance. You may also wish to consider a green mortgage which could provide you with a means to upgrading the energy efficiency of your property in order to improve EPC ratings. Reduce your management costs Property management costs can be one of the greatest expenses for landlords, whether you paying for a managing agent to handle the day to day running of your property, or you are covering the maintenance costs yourself. Managing agent fees can set you back between 12 and 20 per cent of your rental income. There is plenty of choice, which means you could save money by shopping around. When comparing agents, make a list of the services you genuinely need so that you do not pay unnecessarily for things you don’t need. You should always weigh up the pros and cons of being a self-managed landlord versus using a letting agent, and think about any added value that a property management service could offer you that will make it worthwhile, such as offering guaranteed rent. Avoid unpaid rent When thinking about how to make money as a landlord, you’ll need to prioritise avoiding unpaid rent, because it can be a costly issue to face. Even just a single missed payment can have a significant knock-on effect. There are various tactics you can use to deal with tenant rent arrears, or you could look at options that will help you avoid them altogether in the first place, such as a guaranteed rent scheme. How to make money as a landlord, with help from homes2let Here at homes2let, we offer a fully comprehensive property management service, with that all-important added value. Unlike a traditional property management service, the homes2let guaranteed rent scheme returns greater profits, whilst reducing your buy to let investment risk by ensuring your rent is paid on time every month, even during void periods. With no fees to pay or costs to cover, and with everything taken care of, you won’t ever have to worry about the likes of tenant sourcing and referencing, preparing your property for rent, meeting regulatory and legal compliance requirements, arranging property inspections or taking care of day to day maintenance issues. Why not talk to homes2let to find out more? Our helpful team has particular expertise in the South London buy to let investment market, and is ready to share a wealth of knowledge to help you make money from being a landlord. We welcome you to get in touch today.

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Can you make money being a landlord? It’s a good question, especially as rules, regulations and tax breaks continue to change, in many cases not for the better. But with some expert insight and the right strategy, the good news is that buy-to-let investment can still be a lucrative way to create a profitable income stream. Let’s take a look at five ways to help you optimise your profits as a landlord.