The investment process is broken

The buy-to-let process is often synonymous with stress, lethargy and frustration. And the latest data only confirms that assessment. 

In GetGround’s most recent investor survey, three quarters said that the property purchase process decreases their appetite to buy. This proves what most investors already know – the buy-to-let experience is broken.

But, when we consider that experience, which parts hurt investors most? And what does that tell us about their ideal experience? Again, the data tells the story.

Property investment's pain points

Our survey highlighted four key frustrations:

Speed

89% of investors want faster, more streamlined processes. 

What’s more, nearly all respondents to our survey felt a faster experience is a better experience, suggesting that the snails-pace process is the biggest stress when investing in UK property. But why is it so slow?

Firstly, investors must often rely on third parties sharing information promptly – and can be left frantically trying to connect the dots themselves. This inevitably means delays.

Then there’s the property search. Where to look? How to know a great investment when you see it? For 93% of investors, finding that perfect property is just too tough, and takes too long. Which brings us onto the next buy-to-let blocker.

Quality

Again, a massive 93% of investors struggle to find high-performing rental properties.

The problem doesn’t seem to be quantity. After all, three quarters of respondents said they feel there’s enough supply in the market. Instead, the issue seems to be the quality – finding an investment that’ll actually work, either as a second income or as a vehicle for capital growth.

In total, two thirds reported either low or declining quality available over the past year. But then, what tools do investors have at their disposal to find great opportunities? Property agents? Platforms like Rightmove, or Zoopla? As you’ll see, trust in these traditional sources is either middling or, in some cases, almost non-existent.

Trust

The data shows that investors don’t know who to trust – a stressful factor in its own right. But of all the parties involved in the process, who’s perceived as the least trustworthy, and why?

At the bottom end of the scale are mortgage lenders, with only 11% of investors saying they’d trust them. That’s followed by estate agents (29%) and mortgage brokers (34%). Interestingly, platforms like Zoopla and Rightmove seem polarising – only half of investors trust them, and only half use them to search for buy-to-let properties.

But it’s only when we explore what’s fuelling this mistrust that we see what really irks investors about the buy-to-let process:

Slow response times

81% of investors said that slow response times lead to a lack of trust. This, again, paints the slow, plodding process as the biggest buy-to-let frustrator.

Disinterest in investor’s needs

81% feel that most third parties aren’t interested in what they’re actually looking for. There’s no personalisation – perhaps as a result of incredibly high demand for property in the past few years.

I know from our work at GetGround that many investors worry they’re seen as cash cows to uninterested parties, who are happy to fill up on hidden fees while pushing low-quality properties. Which brings us to our last property investment pain-point: the cost.

Cost

For 95% of investors, the cost of buying UK property has increased in the last 12 months. The remaining 5% say it’s about the same. Nobody said it’s decreased.

This paints a vivid picture – where the process isn’t just slow, stressful and daunting, but also costly. Of course, buying a property will always be expensive – but we’re not talking about deposits here. Let’s look at two factors driving up those costs:

Hidden fees

Our survey shows that hidden fees are rife across the process. 70% of respondents said that advisors, brokers, lettings agents and property managers are the most likely to request fees unexpectedly.

Purchase collapse

The investor’s worst nightmare – a collapsed purchase. In total, over three quarters of investors have had a purchase collapse, and perhaps that’s no surprise. After all, one in three UK property purchases falls through, costing investors over £2,000 with nothing to show for it.
 

Time for a blissful buy-to-let

If these stats show you anything, it’s that the property investment process has to change. Investors are demanding a faster, clearer, simpler experience, where it’s easy to make a good investment. At GetGround, we totally agree. It’s why, this week, we’ve launched GetProperty.

GetProperty is the all-in-one investment experience, where you can settle your next investment in half the time, with half the hassle. Inside, you’ll find high-yield UK properties, mortgages up to 85% LTV, even property management – all under one roof. For buy-to-let with a bit more bliss. 

Discover GetProperty for yourself.

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