Landlords Think it is a Good Time to Buy Property
Investors believe that now is the best time to buy properties, due to current house prices and a demand for rental accommodation.
Landlords Think it is a Good Time to Buy Property
The buy-to-let market is one of the most prosperous in the current UK climate, as the sector achieves at a higher rate than the conventional buy-to-sell market.
A recent survey reveals that buy-to-let investors are confident in the present market conditions, and are considering expanding their property portfolios and invest further at this time.
The study was conducted by LSL Property Services, and found that 48% of buy-to-let investors believe that now is a good time to increase their number of investments, with just 1% claiming that they need to reduce their portfolios.
Results of the research also found that 82% believe now is a good time to buy due to house prices, while 53% named strong tenant demand.
These astounding facts are due to property prices remaining lower than five years ago, meaning that people do not want to sell. These low prices are attractive to investors, who can achieve high rental returns from the ever-high demand for rental property. Confidence in the market is also rising, as properties are bought with a business attitude for long-term assets.
“House prices are still subdued in many parts of the country and tenant demand is still growing,” Commercial Director of LSL Property Services, David Brown, says. “This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in buy-to-let as a long-term investment.”
Brown adds: “The majority of landlords expect tenant demand will increase in the future, and as long as lending to first time buyers remains in the doldrums, and new house building remains subdued, we won’t see demand for rental accommodation tail off.
“In these conditions, while affordability may increasingly come into play as landlords set rents, they are far more likely to continue to rise than tumble in the coming 12 months.”1