The demand for rental property is still robust, and this creates an opportunity. If you are looking to enter the lettings industry, or you would like to expand your rental property portfolio, David Harris & Co is here to help you.
There is still significant demand for rental property in the capital, and areas such as Finchley are in huge demand. We believe Finchley offers residents the best of both worlds, allowing people to be in the heart of the city as easily as they can venture out into greener pastures.
A study undertaken by The Deposit Protection Service and Zephyr Homeloans spoke to more than 300 landlords, with the headline finding being 34% of respondents say they have recently bought a buy-to-let property, or intend to buy one within the next nine months.
There is no denying the opportunity to buy property at a discounted rate has inspired many landlords to act.
The study provides insight into the most common reasons landlords have for buying property, including:
Paul Fryers, Managing Director at Zephyr Homeloans, said: “Understanding the purchasing motivations behind professional landlords is an essential factor for Zephyr and our mortgage broker clients. It’s equally important to recognise and appreciate some of the challenges landlords have been facing during the past year and how they will affect their current and future applications.”
Paul also said; “During the pandemic, we saw a significant rise in the use of limited companies to buy and manage property portfolios, and it seems a significant proportion of landlords have made the most of the opportunities provided by the buoyant market conditions we have experienced over the past six months.”
Other findings include:
Matt Trevett, Managing Director at The DPS said: “Although the buy-to-let market has remained more buoyant than some predicted, the last year has not been without its challenges for many tenants and landlords. The survey suggests a large proportion of landlords have been acting to support their tenants, with a significant proportion saying they had temporarily lowered rents during the pandemic.”
Matt concluded by saying; “A recent survey from The DPS also showed that the pandemic has triggered movement from cities to towns and the countryside, so landlords seeking to rebalance their portfolios may look to make purchases that reflect that trend.”
A separate study, by Knight Know, suggests 27% of buy-to-let landlords are looking to expand their rental portfolio. This study spoke to 500 landlords in the UK. Of the landlords looking to add more property to their portfolio, 35% cited the stamp duty holiday extension.
Other findings include:
If you have any questions about the housing market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
