News

Landlords still have an appetite for property investment

By Andrea Wong, 07 June 2017

There has been constant speculation over how the raft of tax changes and ongoing political uncertainty in the UK will affect the overall buy-to-let market. Since the Brexit vote and the build up to the General Election this month, it was claimed that investors have adapted a ‘’wait and see’’ approach, however last month we saw a healthy rise in UK property value whilst landlords have been continuing to show a strong appetite for property investment.

House price growth has dominated a report published by Halifax which mentions an increase of 3.3% from the same period of 2016, although prices in the three months to May were 0.2% lower than the preceding quarter.

Despite house prices fluctuating, it has not deterred investors from extending their property portfolio, with many people looking to purchase more soon.

It has been reported in a Property Investor survey that the number of landlords looking to expand their portfolio in the next 6 months has risen from 45% to 48%. Interestingly, single-property landlords are more likely to expand their portfolio in the next 6 months than those who own two or more properties, although the difference is not huge. In November last year, 31% of landlords with more than 20 properties were looking to reduce the size of their portfolio, however this figure has substantially lowered to 17%. On average, only 9% of landlords are intending to sell their properties, showing that buy-to-let remains a great long-term investment opportunity.

The report suggests that landlords are now looking at properties which are further away from home with the number of landlords owning properties between 11 and 25 miles away increasing from 14% to 19%.

Overall investors are generally looking further afield to Northern cities such as Liverpool, which has recently been named as the number one hotspot for buy-to-let yields. Taking into consideration the costs of a mortgage, landlords can achieve rental yields around 8% on average in Liverpool. This is largely due to the combination of lower entry prices and strong rental prices which are on average £1,021 per month. According to the director of Private Finance, Shaun Church, succeeding in making buy-to-let a long-term profit ‘’depends on buying an affordable property and being confident its value will appreciate at a higher rate than mortgage borrowing’’.

With landlords beginning to adapt to the tax changes and looking to invest in better locations, they are able to achieve better returns and cope with the changing environment in the market. Rising house prices are making it increasingly more challenging for young people to purchase their own house, so there will always be a high demand for rental accommodation.

Interested in our property management service? Get in touch today!

Recent Articles

Zoopla’s ban on ‘No DSS’ listings receives support from trade groups

The property portal has backed government plans to help tenants who are receiving benefits

Read more


What are renters looking for in a property?

Latest research has revealed what renters are looking for in the current climate

Read more


Buyers are better off than renters, but the gap is narrowing

A new report by Halifax has shown that the gap between the costs of buying and renting is getting smaller

Read more


The UK’s quietest (and loudest!) places to live

The place in the UK with the highest amount of noise complaints might come as a surprise!

Read more


Houseboats and caravans, Millennials look to alternative living options to get on the property ladder

A new study has shown that over half (55%) of millennials are unable to save for a deposit in order to purchase their first home

Read more


Request information

Would you like to receive more information about buy-to-let investments? Fill in your details below and one of the team will get back to you.
Your name is required
Your email is required

By submitting your details you consent to being contacted by Knight Knox by telephone and email for this and similar property investments