Buy To Let investors
Demand for rented accommodation has reached record numbers as house buyers are waiting longer before buying a home. Landlords are planning to increase portfolios by 5% over the coming year and the average portfolio is likely to be worth £1.5m in a year’s time.
The average price paid by a landlord dropped from £181,533 to £177,566 in August following eight consecutive months of price rises.
Rents have been increased by 2.4% and yields are stable at 6%.
Landlords are more able to negotiate property prices than the residential buyer and can see under valued places that would be suitable for tenants.
Investors with a reasonable deposit and with a careful choice of property should do well especially those who have long-term views.
The increases in interest rates and the financial problems of late have put off would-be buyers from purchasing property. This means the demand for rented accommodation is even greater.
The slower house market has enabled landlords to increase their portfolios as they are confident about the future of buy to let.
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