BUY TO LET MARKET STILL IN GOOD SHAPE
26 Aug 2019
High prices and economic uncertainty continues to leave many home seekers with little alternative but to rent - which is good news for landlords.
Despite a challenging few years for the buy-to-let market, including a raft of new tax and regulatory changes, investment in buy-to-let property continues to outperform most major asset classes, backed by record-low mortgage borrowing rates, stable yields and growing demand from renters.
Demand for rented accommodation has led to upward pressure on rental prices, with the latest data from ARLA Propertymark showing record rent prices this summer.
While landlords’ confidence in the buy-to-let sector has fallen, along with the introduction of a more stringent regulation and a heavier tax burden, the buy-to-let sector remains strong, despite earlier gloomy forecasts, according to a latest landlord panel survey by BVA BDRC.
The award-winning Landlords Panel provides critical insight into rental market dynamics and is used to inform the decisions of mortgage lenders, letting agents, government and charities.
The latest survey shows that being a landlord remains a sound investment, with a third of the 700 active landlords surveyed able to make a full-time living from their lettings and just over half supplementing their day job.
Tenant demand has also increased, with the East and West Midlands performing strongly. London and the South East are the only regions where landlords are more likely to report decreases in demand.
Overall, those landlords perceiving a rise in tenant demand went up from 20% to 23% quarter-on-quarter, with families remaining the most common tenant types.
Shezad Tayub, Director at Online Property Agents highlights the difficulties first time buyers continue to face in getting onto the property ladder; a factor that continues to fuel demand for rental property.
“The ability of first-time buyers to leave their renter status behind and become homeowners is still proving difficult for many people and of course that means there is greater demand for rental property out there in all our Midlands’ cities.
“Leicester, Derby and Nottingham are all vibrant cities, popular both with young professionals and families and they can offer solid returns for landlords and Birmingham has the benefit of a prominent business district. The Midlands region is also within easy commuting range of London, putting us firmly on the map as a buy-to-let hotspot.”
Lettings specialists at Online Estate Agents can offer friendly, informed advice on all aspects of homes for rent online, whether you are looking for buy-to-let property, or flats or houses available for lease. Call 0330 1244 786 to speak with an expert and discuss available packages.
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