Landlords continue to display a considered approach to property investment
Although the world continues to change, the fundamental principles underpinning the private rented sector remain. Despite talk of a mass exodus from urban districts, according to new research from Paragon Bank, over two-thirds of landlords will continue to look for property in such areas for their next portfolio purchase. 36% plan to buy in a suburban area and 6% are looking at rural locations. 66% of landlords said they plan to buy in the same area as their existing properties, with 10% targeting new areas. 20% said it would be a mixture of both.
Landlords were also asked what key attributes they are looking for in any new investment property. Potential for rental yield was cited as the most important aspect, chosen by 77% of landlords, followed by the potential for adding value which was a key attribute for 59%. The lender’s survey of 846 landlords, conducted by BVA BDRC, also found that 16% of landlords plan to buy an average of 2.2 properties in the next 12 months
These figures show that most landlords are displaying a considered, careful approach to property investment, looking at long-term trends rather than short-term sentiment. This approach will be further supported by a vibrant and competitive remortgage market which will allow landlords to refinance and release equity to support their ongoing portfolio needs.
So, whilst we all have to find our own ways to navigate lockdown 3.0, the housing market remains open and financially savvy landlords with strong long-term plans and aspirations will remain active. And the BTL market remains in a robust and healthy state to satisfy these ever-changing demands.