Landlords looking to expand within the next 12 months
14th February 2014
A third of UK landlords are looking to expand their rental portfolios within the next 12 months, according to the latest BM Solutions/BDRC Continental landlord panel.
Landlords are looking to add to portfolios despite tenant demand being at its lowest level for three years.
In a survey of 1,111 landlords, 35% reported an increase in tenant demand in the final quarter of 2013 – down from 52% at the end of 2011.
Approximately 80% of landlords are continuing to make a profitable full-time living from letting, with 76% of amateur landlords able to supplement their “day job” earnings.
BM Solutions’ head of sales Phil Rickards said: “While there will always be elements of the rental market that fluctuate, overall stability will continue to ensure that lettings attract both professional and amateur landlords.
“By increasing portfolios, landlords are also able to further spread the risk of void periods and tenants in arrears, which is important when considering the long term investment rather than focusing on the short term gains.”
Average yields remained static at 6% over the third and fourth quarters of 2013.
Andrew Montlake, Director at Coreco commented, “It has been interesting to note the number of existing landlords who are getting back in touch with us again as they believe now is a good time to expand their portfolios once more. Buoyed by competitive rates and a growing appetite among mortgage lenders to expand their Buy To Let offerings, we see this as a key growth area in 2014″.
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Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.