A poll carried out by PropertyLetByUs found growing tenant demand, falling rent arrears and strong yields have all contributed to giving landlords the confidence to buy more properties.
Managing director of the organisation Jane Morris told Property Reporter: “Home ownership has fallen to its lowest level for a quarter of a century and with property prices continuing to increase, tenant demand is set to grow during 2015 and beyond.
“Over the last year, we have seen a surge in landlords across the UK using our website, particularly in the north, London and the south-east.” Over half of landlords plan to increase portfolio size.
The survey revealed half of landlords have achieved yields between six per cent and eight per cent, while ten per cent have brought in returns of more than eight per cent. For the final 40 per cent, yields of four per cent have been achieved.
In terms of equity, one in three landlords reported a loan to value ratio of between 30 per cent and 40 per cent on their property. Only a quarter of the people polled said they plan to sell off some of their properties in 2015.
This research follows on from a Paragon Mortgages study, which found 41 per cent of landlords thought tenant demand was either growing or booming in the third quarter. John Heron, director of mortgages at the organisation, said it is expected that gross buy-to-let lending will reach £25 billion by the end of 2014.
Of course, one issue that both landlords and letting agents will soon have to deal with is the Immigration Bill, which requires them to check whether potential tenants have the legal right to live in the UK.
This legislation has made plenty of headlines ever since it was announced. Now, high-profile London landlord Victoria Whitlock has expressed reservations about the bill, Letting Agent Today reports.
“The government says there is only a small number of illegal immigrants. So I am wondering, why have landlords been landed with all this extra bother ‘,” she stated.
Belvoir Lettings Wirral have noticed the increased demand for properties. The volume of calls, emails and enquiries we receive daily from prospective tenants looking for properties has definitely increased. Landlords who are considering buying more properties in 2105 are definitely on the right track, as rent arrears in the UK has decreased and there is a higher demand for properties.
The Immigration Bill that has been put in place should not have a massive effect on Landlord’s or Letting Agents, although we have to be more thorough when doing the application process, using a professional agents will ensure your tenant has the legal right to be a resident in the UK.
If you are a landlord who is looking for information on buy to let, or would simply like are advise of what properties to buy, and in what areas. Contact Steve Molloy on 0151 608 7788, or email our helpful team on wirral@belvoirlettings.com
