A recent report suggested that 1 in 7 landlords could be set to expand their portfolios in 2020 with the North West emerging as one of the most desirable regions to invest in the UK. The study in question also found that 1 in 5 landlords (22%) plan to buy in the North West, surpassing other locations such as the South East and Yorkshire so why the sudden upsurge in confidence?
Several mainstream media outlets reported this week that the “housing market is back with a bang” following the Conservative election victory over the Labour Party.
While we are not quite so sure that we would agree with the above statement, there are tangible signs that there has been an upturn in the UK property market with buyers flocking back in record numbers after a three-year Brexit “freeze”.
Indeed, locations reporting a greater proportion of buyers than sellers in the next twelve months include the North East, South West and the East & West Midlands with more than 2 out of 3 (68%) buyers planning to fund their next purchase with a Buy to Let mortgage.
Additionally, 23% of landlords with more than 11 properties will fund their new purchases by releasing equity from their existing portfolio.
Notably, almost 73% of landlords continue to use an intermediary or broker to arrange their BTL facilities with just a fifth going directly to the lender. Indeed, those with 6-10 properties are most likely to use a broker at 79% while just 29% of landlords with 1 property dealt with a lender directly.
It certainly cannot be argued that landlords are becoming more focussed and selective in where they purchase property as well as how they fund these purchases and with rates continuing to drop across the entire BTL market, there is an opportunity there for those who wish to expand their portfolios.
An increase in market activity results in an increase in the need for advice especially among those with larger portfolios. With BTL criteria more stringent than ever before and with the UK government looking to encourage residential purchases, it can become tricky for landlords once they own a certain number of properties due to factors such as stamp duty and individual lender’s criteria.
If this sounds like you then perhaps we can help! Whether you are a first-time landlord or an experienced professional, we have the resources and experience to help you secure the most favourable terms in the marketplace.
For any mortgage-related queries please feel free to contact us using our contact form and we will get back to you within one working day or call 0345 873 1234. Thank you.