If you are looking to buy a new build to add to your property portfolio, then look no further!
A brand new Avant home is the ideal choice to buy to rent out. Our investment homes offer landlords and investors the opportunity to own an energy efficient, high quality property to rent out.
Why choose Avant for your buy to let property?
There are so many reasons why an Avant new build home is the perfect choice.
Firstly, our homes are all built in areas with access to great travel links and amenities, meaning your rental home will be in a sought-after location.
Secondly, our homes are brand new! This means for you as an investor there’s not the hassle of getting your home ready to be rented out.
It won’t need any refurbishment, and as it’s new, the boiler, electrics, and appliances also are all new and unused. This will save you valuable time and money on repairs and updates.
You also will benefit from a 10 year warranty with a new build Avant home. This is because every Avant home comes with a 2 year Avant warranty and a further 8 years of cover from one of our warranty providers, either the NHBC or Premier Guarantee.
Our new build homes are designed for modern living, and appeal to a wide range of tenants looking for a place to rent. In addition, new build homes are highly appealing to tenants due to them being very energy efficient.
This will mean lower bills for your tenants, making an Avant home an attractive place to rent. This means you can potentially command a higher monthly rental yield due to tenant demand for new, energy efficient homes.
All homes come with an “Energy Performance Certificate”. Our Avant new build homes are usually rated B or above. Older homes are more likely to be rated much lower. This could mean they have more issues with ventilation, insulation and heating systems.
Going green is great for the environment, but also has significant benefits for you. With rental fees increasing all the time, tenants are becoming increasingly conscious of the running costs of the property.
The typical household bill has increased by 59% over the last three years. Renting a property with an A or B rating could typically save tenants 20% on their energy bills compared to a property rated D.
This could increase to a staggering 58% if the property has an EPC rating of G. With better insulation and modern construction types, keeping the heat in could save tenants hundreds!
The benefits don’t stop there… Banks and building societies are trying to do their bit as well by incentivising you to go green. The way they do that is by offering exclusive rates when buying a property with an EPC rating of A, B or C. This includes discounted rates of 0.1% or 0.2% on many fixed rate deals. Money definitely better off in your back pocket!
These deals are also available when you look to remortgage, meaning you could benefit from the reduced rates for the lifetime of your investment. This all adds up to a safe investment with an improved rental yield.
Not only could you benefit from cheaper monthly payments, but a handful of lenders are also offering greater affordability on property with a high EPC rating. This could mean you could reduce the deposit you're looking to put down and increase the size of your portfolio.
When buying your new home, it’s easy to get wrapped up in the here and now, but it’s important to have one eye on the future. This is something that mortgage providers are acutely aware of.
Official figures from the ONS show the average UK house price rose from £167,716 in January 2013 to £290,000 at the end of January 2023, an increase of 73%. A contributing factor behind this increase has been the increased demand for energy efficient properties. We have seen 15.5% increase in demand for properties with an EPC rating of A or B.
Property value and rent is based on demand – the more demand, the higher the value and yield. This means you’ll expect to see a better return on your investment.
Another benefit of choosing Avant for your buy to let property is the speed of completion!
Buying directly from Avant Homes means you won’t have any upward chain to contend with. We also have a selection of homes which are ready now, speeding the whole buying process up significantly.
There’s also security and certainty when buying a new build. There’s no risk of buyers pulling out. Our reservation fee and membership with the New Homes Quality Code means you will experience protection and excellent customer service.
Buy to let mortgages
If you are not a ‘cash buyer’ paying for your investment home outright, then you will need a Buy to Let mortgage.
A Buy to Let mortgage is a specific mortgage type which helps you borrow money to purchase an investment home to rent out. Lenders offer different products for first time investors and seasoned landlords.
New build properties will often have a better EPC rating as they are built to current building regulations. This means that lenders offer bespoke products tailored to the new build market with enhanced rates and greater affordability. With the UK committed to reaching net zero by 2050 picking an energy efficient home could be more important than ever, not only now but in the future.
How much you can borrow is based on your expected rental valuation. Before deciding when to buy speak to our Sales Advisors about expected rental figures.
Most Buy to Let mortgages require a 25% deposit, with more experienced Landlords being able to reduce their deposit to 20%.
Although there are restrictions on how many Buy to Let Mortgages you can have with specific a lender, with over 50 lenders on the market you’ll have a wide variety to choose from.
The best way of deciding how much to rent your buy to let home out for is by doing market research and seeing what similar homes in the area are being rented out at price wise. Our Sales Advisors can help you with this! Your lender will also do their own checks and give you a recommended rental price based on what the home is worth.
Yes, you will need to pay Stamp Duty (or LBTT in Scotland) on a buy to let property. This will be a higher rate due to it being a ‘second property’.
It is possible to rent your buy to let home to a family member, but this should be disclosed to your mortgage lender as many lenders have regulations on renting to family.
Some lenders offer a special mortgage for people who want to rent out their home to a family member. This usually is called a Family Buy to Let mortgage. This mortgage type allows you to charge family members a reduced rent cost, but you will likely need a bigger deposit as the affordability testing is much stricter.
Ultimately, whether it’s better rates, greater rental yield or the peace of mind that your property is safe from future changes in the market, there’s never been a better time to go look at a new build property as your next investment!
