Landlords are investing more in buy-to-let, as increasing confidence floods the market. The size of the average portfolio climbed to eight properties during 2012, up from seven at the start of the year. Twenty nine per cent of landlords say they have bought a property in the past year, compared to 25 per cent at the end of 2011.
This is likely to be in no small part due to the problems first-time buyers are facing, forcing many to continue renting for longer. The latest data suggests that landlords are carefully but concertedly increasing their portfolios; activity is returning to the buy-to-let market. Whilst many investors naturally remain cautious, the climb to an average of eight properties per landlord shows that 2012 was a strong year.
Further evidence that 2012 went well for the country’s landlords is that the value of buy-to-let mortgages rose to £4.2bn in the final quarter of 2012. That is an eight per cent increase on the preceding quarter.
This demand for rental property shows little signs of abating, with house prices at such a level that first-time buyers are continuing to find it difficult to save the money required for a deposit.
When coupled with banks which are unwilling to lend at the same loan-to-value ratios as they were pre-credit crunch, it seems unlikely that the buy-to-let sector’s growth will be halted anytime soon.
The private rented sector will continue to be a home for investors throughout 2013, and strong tenant demand coupled with unaffordable house prices in some areas will help to sustain the sector’s growth.
It also means there is increased need for higher standards in the sector, to ensure the growing number of tenants and landlords are protected.
If you are an existing landlord or potentially a first time landlord get in touch with Belvoir Sheffield today to take advantage of our vast expertise and experience to ensure you are getting the best advice. Contact us today on 08452 60 40 90 or email us at sheffield@belvoirlettings.com
Source: http://bit.ly/SPcgTZ
