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Property investment on the rise

by ARPM

What lies ahead for the UK’s property investment sector? One good piece of PR can put a spectacularly rosy spin on prospects but when several pieces of research (and not from letting agents) tell the same story, there has to be some truth in the sentiment.

Here at ARPM, we constantly monitor the property investment market and scour the trade press for professional opinion. Having been voracious readers of late, we can draw one conclusion – the appetite for British buy-to-let is healthy, with some serious weight behind our assessment.

Firstly, home grown property investors have been proven to be increasingly active. New landlords seem to have pushed aside the recent tax and regulatory changes to focus on the positives – property that is outperforming other major asset classes, increasing tenant demand, low mortgage rates and reliable long-term price appreciation.

Home grown and overseas landlord interest

The above appraisal has been provided by Knowledge Bank – a search criteria specialist who analysed recent searches made by mortgage brokers. It found interest from new property investors is growing, with ‘first-time landlords’ the most-searched term by brokers in February 2021 – not a one-off anomaly but also a phrase that has regularly appeared in the top five most searched-for terms in recent months.

At the other end of the scale are international property investors, who are proving to be undeterred by Brexit. Of 500 high-net-worth investors who participated in DLA Piper’s European Real Estate Global study, one third said their investment focus in 2021 would be in the UK, with Chinese and American investors most likely to purchase residential property here this year.

The sentiment was echoed in the latest The Emerging Trends in Real Estate report. This respected document, published by PricewaterhouseCoopers and the Urban Land Institute, cited London as the second best place for property investment in Europe. A separate study by Pure Property Finance also found London, Manchester and Liverpool were favoured by foreign companies investing in UK property.

A call for professional property management

So what do both groups of keen property investors have in common, despite being poles apart in terms of their backgrounds? They both need the help of an expert property manager. For first-time landlords, the compliance requirements and time involved in keeping a let legal will come as a shock, therefore much hand holding is necessary.

International property investors are, well, just that – international! Whether travel restrictions or busy schedules keep them from the UK, global landlords are highly unlikely to undertake the day-to-day management of their portfolios, preferring to hire a professional in the UK to oversee buy-to-lets and boiler breakdowns on their behalf.

There’s a real opportunity here for letting agents to shout about their ‘back to basics’ lettings and property management service, especially as two of their biggest income-winning target markets are active in 2021.

ARPM can help support your business by providing outsourced pre-tenancy administration, 24/7 property maintenance and rent collection support – combined as a full property management package or purchased as stand-alone services.

If you’re starting a managed portfolio business drive and would like more time to concentrate on attracting new landlords – and the reassurance that you have the resources to cope with a bigger managed book – let’s chat today.

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