Don’t resort to desperate measures
We know that the Tenant Fee Ban has cost letting agents dearly, with an estimated loss of £314.5 million paid to letting agents by tenants*. But desperate times do not always call for desperate measures …
Current market conditions are filling the PRS with confident landlords, new research reveals. A report commissioned by Cambridge & Counties Banks revealed 64% of UK landlords are optimistic about the outlook for the residential buy-to-let sector over the next three years, while 13% are ‘very’ optimistic in terms of investment growth and yields.
There’s also a ‘carpe diem’ approach among landlords, with 19% using the prevailing property climate to grow their buy-to-let portfolios by a third, with 11% wanting to double their portfolio size in the next 36 months.
The acquisition of property investments is currently aided by an increasing pool of reduced-rate and new buy-to-let mortgages. Figures released by Moneyfacts make especially good reading for first-time landlords. Novice property investors now have access to a record number of specialist mortgage products, up over the last five years from 645 deals to 1,405.
Completing the positive picture is yield news from Nationwide, which shows a stable picture as we had in to the summer months. The building society’s research showed the strongest returns remained in the North East, where yields were typically 5%, while the North West delivered a similar return of 4.8%. Nationwide also reported that tenant arrears are falling, dropping from 9.1 across all England and Wales tenancies in April to 8.9 in May.Back to knowledge hub