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Major Regional Difference in Landlord Experience and Buying Habits
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Buy-to-let landlords in the Midlands continue to invest in the sector on the back of a ‘positive outlook’, however, elsewhere in the country, landlords are generally scaling back, particularly in London, recent figures reveal.
Recent data from UK Finance, reveals that buy-to-let mortgages for property purchase have dropped by 40% overall since 2015, subsequent to the announcement of tax and regulatory changes for the sector.
However, the latest survey of over 680 landlords conducted by BDRC on behalf of Paragon, discovered that landlords in the Midlands seem to be challenging the trend, endorsed by strong, regional economic growth. A thriving higher education sector and continued, effective regeneration of Britain’s second city, Birmingham.
Moreover, landlords remain picking up property in the East and West Midlands, despite a significant drop in purchase activity in Central London and more modest reductions across the rest of the country, as a result of higher rental yields, in the region, with East Midlands landlords currently achieving a 6.7% average rental yield, whilst those in the West Midlands are attaining yields of 6.2%.
Some 42% of landlords in the East Midlands and 33% in the West Midlands claimed that tenant demand was rising, in comparison to the 24% of landlords who indicated growing demand.
Managing Director of Mortgages at Paragon, John Heron, commented: “These findings highlight a big regional difference in landlord experience and buying habits.
“Some central London landlords appear to be scaling back a little while landlords in the Midlands continue to invest on the back of a positive outlook.”
