24^th Sep 2018

The latest research from a BTL mortgage lender claims that buy-to let East and West Midlands property purchases activity are on the up.

From the poll that 608 landlords took part in, it found that BTL property purchases had massively dropped by 40% since 2015.

In spite of the major decline, landlords in the Midlands are 'bucking the trend' because of the multitude of universities in and around Birmingham, as well as the city's successful regeneration and economic growth making the region highly investable.

Several financial service firms have further improved the city's fortunes when relocating their London based head offices to Birmingham, with the Deutsche Bank and HSBC recently completing their moves. The 2020 Commonwealth Game will also generate further growth in the region.

42% of East Midlands' landlords have seen an increase in demand from tenants as well as 33% of landlords in the West Midlands.

When compared with landlords across England, the Midlands' figures are particularly strong with the country's overall average of 24% of landlords encountering higher tenant demand.

Landlords from the region also reported strong average yields of 6.7% in the East Midlands and 6.2% in the West Midlands.

The research also found that landlords in Central London were least likely to be adding to their property portfolios, with 16% stating that they had sold some of their property portfolio at the start of the year.

Managing director of the mortgage lender, John Heron, said: "These findings highlight a big regional difference in landlord experience and buying habits. Some Central London landlords appear to be scaling back a little while landlords in the Midlands continue to invest on the back of a positive outlook."

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