The government has approved plans to build a third runway at Heathrow Airport, which should be completed by 2026. According to Adam Male, director of letting at Urban, this will provide opportunities for buy to let landlords in the areas surrounding Heathrow Airport.
Adam Male claims that a new runway may put off homebuyers who do not want to live near a busy airport. This could reduce the prices of houses but provide investment opportunities for buy to let landlords. Estate agents Emoov has forecast that house prices could fall by as much as 20% as a result of the new runway plans.
A new runway is a large project and will require a substantial workforce to construct. The workforce building the expansion as well as the increased number of people employed at the airport after the runway has been built will need accommodation. Construction workers will need short-term leases, with many airport workers wanting more long-term tenancies. The areas surrounding Heathrow, which include Hounslow and Hillingdon, could provide good business property investment opportunities for buy to let investors.
Adam Male predicts that rental yields in the Heathrow area will be strong. He said:
“If the sales market takes a hit and prices fall as a result, the area will become even more desirable for those getting on the buy-to-let ladder, due to the increase in rental yields from falling prices and increasing rents.”
Mortgage brokers will benefit from providing commercial mortgages to finance buy to let purchases.