21^st May 2018

According to the latest research by a property consultancy, Yorkshire and Humberside landlords are snapping up new rental properties and over the next five years will be buying the most BTL properties than any other region.

The research claims that 60% of landlords that have BTL properties in Yorkshire and Humberside are planning to purchase another BTL property at the very latest by 2023, which is around 20% above the national average of 40%. What is also extremely encouraging is that over a third of landlords with properties in Yorkshire are hoping to buy another rental home by mid 2020.

The survey has also found that just under half of Yorkshire landlords stated that renting out properties is their main income, whereas only a third of landlords in London had renting out 'homes' as their prime source of income.

Andy Phillips, commercial director at the consultancy, said: “The results of our survey demonstrate that Yorkshire is fast becoming a hotspot for investment in the private rented sector, while the capital is in decline.

“The major cities in Yorkshire, such as Leeds and Sheffield, are growing rapidly, and with that comes increased demand for rental properties in these areas – and savvy investors are capitalising on this in droves.”

The research has highlighted that although Brexit had had little effect on Yorkshire landlords, around half of London's landlords have no intention of purchasing additional BTL properties in the foreseeable future. Brexit is a major concern for Londoners as more than 40% stated that it will have a major impact on the demand for rental homes, whereas only 19% of Yorkshire landlords are taking this view.

Andy Phillips continued: “The results show that landlords in Yorkshire evidently see their future lying with buy-to-let properties and the negative Brexit commentary clearly doesn’t seem to have deterred them. Almost half of the landlords in Yorkshire rely on renting out property as their primary source of income, earning an average of £26,474 per annum. However, the result of Brexit does seem to have had an effect on the confidence of landlords in the capital.

“There’s noticeably still some uncertainty around how the buy-to-let market will fare post-Brexit, but whilst we may hit a period of economic turbulence, the nation’s housing needs will be no less.

“Potential home buyers, put off by the current uncertainty of the market, could well decide to delay their purchase in favour of renting. With this wider pool of tenants, it’s likely that the rental market will continue to grow over the next few years.”


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