Growing Number Of Landlords Looking To Expand Property Portfolio
While this has been a challenging year in the rental sector, it appears as though there is an element of confidence amongst landlords. This is something we have seen for ourselves at Brentwood Lettings.
We work closely with many landlords in and around Moston, and we pay close attention to what they say, and what they want to do next. Many of our existing clients believe the next few months and years will be fruitful for them.
We also stay in touch with the latest studies, and two recent reports highlight many landlords are keen to expand their property portfolio. If this is something which interests you, please contact us today.
There is considerable activity in the rental market
A study undertaken by The Deposit Protection Service and Zephyr Homeloans spoke to more than 300 landlords, with the headline finding being 34% of respondents say they have recently bought a buy-to-let property, or intend to buy one within the next nine months.
The study provides insight into the most common reasons landlords have for buying property, including:
- 35% of respondents seeing it as a long-term investment opportunity
- 34% of respondents mentioned the stamp duty saving
- 26% of respondents stated a desire to diversify by location
- 23% of respondents wanted to diversify by property type
Paul Fryers, Managing Director at Zephyr Homeloans, said: “Understanding the purchasing motivations behind professional landlords is an essential factor for Zephyr and our mortgage broker clients. It’s equally important to recognise and appreciate some of the challenges landlords have been facing during the past year and how they will affect their current and future applications.”
Other findings include:
- 43% of landlords said they have temporarily lowered rents during the pandemic to assist tenants
- 22% of landlords said they have refinanced their mortgage since the pandemic
- Only 7% of landlords say they have taken a mortgage holiday
- 13% of respondents said they sold a property during the pandemic
The stamp duty holiday influenced some landlords
A separate study, by Knight Knox, suggests 27% of buy-to-let landlords are looking to expand their rental portfolio. This study spoke to 500 landlords in the UK. Of the landlords looking to add more property to their portfolio, 35% cited the stamp duty holiday extension.
Knight Knox’s commercial director, Andy Phillips, said: “The last 12 months have been a total rollercoaster for the housing market. Lockdown 1.0 temporarily halted activity before Rishi Sunak’s announcement of the stamp duty holiday led to the industry facing one of the busiest periods for a decade. For landlords, the incentive has provided a welcome opportunity to purchase more properties while making significant savings. Appetite for rental property is high – particularly given that the financial impact of the pandemic could be affecting people’s plans to purchase – so buy-to-let is a fantastic investment in the current climate.”
Other findings include:
- The average landlord earns more than £20,000 net income annually from renting property
- 88% feel confident or very confident about the rental market over the next 12 months
- Only 4% of landlords are looking to reduce their portfolio by next year
Brentwood Lettings can call on more than 19 years’ worth of experience in the Moston and surrounding areas letting sector. We are a non-franchise and independent lettings and property management agency in Manchester, and we are here to serve you. To arrange an appointment, a rental property valuation or to discuss your options, give us a call on 0161 681 3724.