22nd
Dec 2021
According to a lender’s survey 34% of UK landlords are positively planning to purchase at least one extra property in the next twelve months.
Even though the numerous challenges of the new Covid strains continue to evolve this has not changed many BTL investors’ mindset in expanding their portfolios and is mostly down to house prices at record ‘highs’, as the promise of being rewarded with higher rental incomes is a major incentive.
14 per cent of the 34 per cent of landlords planning to invest in more housing stock in 2022, said they will be buying more properties than originally planned for showing a considerable belief in the PRS sector.
Property prices may be at record levels but there are high levels of confidence that this will continue to rise next year as 67 per cent stated they are extremely positive in the market next year.
This ‘feel good’ factor for landlords is encouraging them to add to properties in new areas with 13 per cent intending to buy a property in a different location; 36 per cent of these landlords are looking to invest in urban locations and 30 per cent are considering more rural locations. The north of England is becoming a magnet to BTL investors as 23% of those landlords planning to purchase properties in the north.
There is also a shift in buying patterns besides ‘exploring’ new areas to expand into, 12 per cent of landlords are considering to buy a different type of property with just over a third (34 per cent) looking at semi-detached houses and 31 per cent considering terraced houses at the top of their ‘must have’ list. Although tenants prefer ‘homes’ with gardens flats are still popular as 27 per cent are interested in this property type.
Emma Cox, Sales Director at the Bank, says: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has stood firm and house prices have continued to soar in price. This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months. Their buying activity and trends show that the market is likely to remain strong over the short term.
“Indeed, with 2021 announced as the “busiest year” for the housing market according to Zoopla, despite recent falls in transactions, it’s clear that the market has fully rebounded from the lows of the pandemic. As supply continues to be low, it’s unlikely that we’ll see house price growth slow significantly and as we move into January next year following the seasonal slowdown over Christmas, property investors will be seeking further opportunities to expand their portfolios.”
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