12th
Jun 2017
The Northern Powerhouse project (concept) has helped to encourage a new 'waft' of investment, which in turn has driven up property values hand in hand with increased rents across the North particularly in Manchester. There is little doubt that this surge will be enjoyed across many other northern regions.
The latest study undertaken by a Mortgage Club backed by one of UK's investment companies claims that that 80% of brokers predict that the north of England will, within the next year, become a landlord hotspot.
In the Mortgage Club's recent buy-to-let forum, 80% of the brokers who attended, were given a questionnaire regarding how the BTL market will develop after the legislative changes that came into force in 2016.
More than two thirds of brokers - 69% - forecasted that landlords will have to 'clean' their portfolios by selling their properties that are bringing in low yields, however 45% of the brokers predict that 45% of landlords will increasingly start to buy properties in university cities and towns and invest in student 'digs'.
Jeremy Duncombe, director of the Mortgage Club, said: “Over the past 12 months, the buy-to-let market has experienced a myriad of legislative changes. Today’s research from our Mortgage Club’s inaugural buy-to-let forum shows one of the impacts of these developments, with developers looking north for value. Landlords are resourceful, and this demonstrates the resilience of the market, despite many changes.
“The last year has been a particularly challenging year for buy-to-let. The Stamp Duty hike, coupled with the changes to tax and the PRA legislation affecting landlords with four or more properties, has undoubtedly impacted the purchase market in particular. However, it is reassuring to see that confidence in this essential tenure remains as landlords respond and adapt to this new landscape.”
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