Taylor Scott International News
Over half of landlords in the UK are looking to buy more property in 2015 and are feeling bullish about the new year, according to a new study. The optimism is fuelled by the growth in demand for rental property, falling rent arrears and rising rent prices during the last 12 months, says the research from online letting agent PropertyLetByUs. The survey also found that 50% of landlords have achieved yields of between 6% and 8%, 10% of landlords have achieved yields of over 8% and 40% of landlords have achieved yields of 4%, over the last 12 months. The firm says that rising property prices has meant that almost a third of landlords are enjoying sizeable equity in their property, with a loan to value ratio of between 30% and 40%. It also says that with booming tenant demand, it is no surprise that only a quarter of landlords are planning to cash in on rising property prices by selling some of the their buy to let properties in 2015. ‘Landlords have enjoyed good rental yields and increased asset values in 2014,’ said Jane Morris, managing director of PropertyLetByUs, adding that they have also experienced high levels of tenant demand, with just 3% reporting that it is declining, according to recent research from Paragon Mortgages. The study shows that overall, 41% of landlords surveyed said tenant demand was growing or booming and 51% said demand was stable. Home ownership has fallen to its lowest level for a quarter of a century and with property prices continuing to increase, tenant demand is set to grow during 2015 and beyond. ‘Over the last year, we have seen a surge in landlords across the UK using our website, particularly in the North, London and the South East. We have also seen a sharp rise in the website’s advertised properties, up by 50% since May 2014,’ explained Morris. Continue reading →
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