24th
Nov 2022
According to a lender’s research the majority of landlords - 60 per cent - will be increasing their rents sooner rather than later to offset the ever rising cost of living.
The survey was carried out with 120 landlords who owned an average portfolio of 7.5 properties which also found that one in five participants said they intend to sell some of their properties to help ease their financial woes, however a third claimed they are considering upgrading their properties to be more energy efficient.
Virtually all of the respondents – 93 per cent – said the economic situation has severely impacted their investment plans.
In terms of purchasing new properties of those that are intending to, 34% said that they are “cutting back” on buying city properties because of the increasing number of people choosing to work from home.
45 per cent looking to add to their portfolios said they will only buy properties that are currently under the existing stamp duty threshold which of course will be changed, for the worse in 2025.
The bank’s chief economist James Sproule, says: “The property market is entering a period of increasing uncertainty, with house prices in some areas already falling and a rising regulatory burden being seen by some landlords as a reason to reduce their exposure to the market.
“While the ongoing cost of living crisis might be seen as the driving factor in the buy-to-let market, equally important are the post-pandemic movement back into cities, potential buyers delaying purchases and thus looking to rent, and fewer properties, meaning those who do persevere, are likely to see higher yields.
“Savvy landlords are using the changes to stamp duty to cost-effectively reshape their portfolios and invest in energy efficiency, something which has become an ever greater concern of potential tenants.”
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