8th
Feb 2022
Because of the pandemic effects on all wakes of life, landlords are now playing savvy by investing in regions far away from London to achieve a much better rental yield according to an industry insurance provider.
Figures from the company shows that Birmingham, Bristol and Leicester are now experiencing the quickest growth of BTL purchases.
Following analysis of more than 150,000 insurance policies it has revealed that Birmingham has seen a 14.6 per cent increase in BTL purchases from 2020 to 2021, Bristol is the runner up with a 12.7 per cent rise and Leicester recorded an 11.8 per cent increase.
London was placed at seventh in the buy-to-let growth list because of the pandemic and higher rents as well as demand being far higher than supply.
The data suggests that UK landlords are extremely confident in the higher yields across all regions in the UK this year.
A spokesperson for the company, said: “The pandemic has contributed to a reshaping of the UK rental market. With rising house prices and an increase in average rent, there have been slower levels of growth in buy-to-let investment across the capital. Instead, many landlords are now looking to other areas – particularly those with a high student population – where they can attract a greater rental yield.
“Contributing over £16 billion annually, landlords are a vital part of our economy. What’s more, the 2.6 million landlords across the UK provide accommodation to over 4.4 million households, so it’s encouraging to see growth in buy-to-let investment across all corners of the UK. We can expect this to carry through 2022 as the country continues its recovery after Covid-19 and landlords look to make their next investment.”
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