Landlords are going into the new year feeling positive about the buy to let sector and are looking to potentially expand their portfolio in the near future.
A survey on some 5,000 landlords by the mortgage broker Property Master found that landlords are feeling positive about 2021 after the UK property market managed to remain resilient after a challenging year. In the survey, 45% of the landlords surveyed said that they feel optimistic about the buy to let sector and 43% have even said that they are considering buying more buy to let properties within the next 12 months.
Angus Stewart, Property Master’s chief executive, said: ‘For landlords, as for many other sectors, 2020 is a year that brought plenty of challenges. But in the case of landlords, Coronavirus and the resulting economic uncertainty came on the back of a raft of regulatory and tax changes over recent years that have left the sector battered and which saw smaller landlords in their thousands throw in the towel.’
Stewart continued: ‘However, our survey shows the buy to let sector as a whole is a resilient one. Those landlords that have survived may well be stronger and our survey shows them as giving buy to let the thumbs up as we move into 2021.
‘We see the year as being one of two halves. There is clearly continued turbulence forecast for the first half of the year as coronavirus and Brexit play out. But the fundamentals of the private rented sector remain and now more than ever an increased number of people need a good quality roof over their heads, and this will create plenty of opportunity for landlords to do well.’
Landlords have good reason to feel positive; the last couple of years were a challenging time for the buy to let sector with tax changes for landlords, Brexit – not to mention the small matter of a global crisis. However, in every instance, the buy to let sector always came out on top with demand in the private rented sector overwhelming any negative impact from the aforementioned events.
The property market is already in good stead for the new year – HomeLet’s rental index revealed that average rents have started 2021 on a high with rents increasing by 2.7% in the year to December 2020. This meant that the average UK rent stood at £979. When London was excluded, that increase stood at 5.7%, with the average monthly rent costing £838. The region that saw the biggest increase in the past year was the South West with rents increasing at an impressive 10%.
House prices also went into the new year on a high, with the Nationwide recording a 7.3% year-on-year increase in December – the biggest increase for six years. All regions saw prices rise throughout the year, but it was the South East that saw the biggest change in fortune – prices in this region were up by 8% in 2020, compared to a decrease of 1% in 2019.
Clearly, there are lots of reasons for landlord to feel positive about the year ahead. Despite the unusual circumstances, there continues to be a lot of interest in the market and landlords will certainly see the benefit.
Are you one of the landlords look to expand your portfolio this year? Take a look at the tenanted properties we have available!
