Boom in the buy-to-let property market

Marketing No Comments

Demand is growing for buy-to-let properties across the north and north-east as investors seek to capitalise on good rental returns and the rising property market. Local estate agent Galbraith has […]

Read More

Demand is growing for buy-to-let properties across the north and north-east as investors seek to capitalise on good rental returns and the rising property market.

Local estate agent Galbraith has reported a boom in the buy-to-let market with a typical two-bedroom apartment in Inverness expected to sell for £165,000 with a prospective landlord achieving rent of between £750 to £775 per month.

Marsaili Macleod, a lettings adviser with Galbraith, says there are two key reasons why there has been a shift in the market.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

Strong demand from tenants

“In recent years investors have been more interested in the holiday lets sector as these were often considered a more profitable option than residential lets,” said Marsaili.

“Now we are talking to more landlords who are interested in the core residential lets market for two reasons.

“Firstly, strong demand from tenants and lack of supply means that rental prices are rising and the landlord can pick and choose from waiting tenants.

“Secondly the value of the property itself will rise over the term of ownership because property prices have risen considerably in Scotland over the past two years.

“Many of our clients are planning ahead and investing in a buy-to-let property which will achieve good capital growth and fulfil their financial objectives while offering security.”

Lenders are currently offering capital and interest mortgages, or interest-only mortgages, for buy-to-let properties with monthly repayments lower than the likely monthly rental fee.

Discover our Buy to Let Mortgage Broker services.

According to Marsaili, this offers the potential to achieve a return each month even taking into account that a purchase of this kind is subject to the Land and Buildings Transaction Tax at 4 per cent on second homes.

And with the cost of borrowing remaining low, Marsaili also believes that this is playing a part in the market change as people are using it as an opportunity to invest in their future.

Low borrowing costs

“Although interest rates are rising, the cost of borrowing remains historically low,” said Marsaili.

“The potential returns in the buy-to-let sector are good, coupled with the likely significant rise in value of the property itself over the term of ownership.

“Clients are considering whether to buy a property which can be let now to a tenant and in five or 10 years’ time potentially made available to their children as a first home or for when they go to university.

“Having evaluated the returns from the holiday lets sector and the potential returns from residential tenancies, clients are choosing the residential lets market.”

Galbraith currently lets over 1,000 homes to residential tenants for clients across Scotland and the north of England.

By Rosemary Lowne

Source: The Press and Journal

Discover our Mortgage Broker services.

Property rents rise as Scotland catches up with England & Wales

Marketing No Comments

Scottish property rents have continued to rise at a higher rate than the rest of Britain after years of low increases according to analysis of the latest data from property […]

Read More

Scottish property rents have continued to rise at a higher rate than the rest of Britain after years of low increases according to analysis of the latest data from property firm DJ Alexander Ltd, part of the Lomond Group which is the largest lettings and estate agency in Scotland.

The latest data up to February 2022 shows that the annual increase in rents was 2.6% compared with 2.1% in England and 1.4% in Wales. The Scottish annual rate has been higher than England and Wales each month since July 2021. However, over the long term since 2015, rents in England and Wales have risen at a higher rate than Scotland.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

David Alexander, the chief executive officer of DJ Alexander Scotland, commented:

“The current increases in rents across Scotland reflects growing demand but is also a sign that the market is correcting itself. This data shows that Scotland’s rent increases have consistently been lower than England and Wales since 2015 and the current increases are simply a sign of Scotland catching up.

“It also needs to be remembered that a 2.6% annual increase in rents is still quite low given that inflation is now running at around 6 to 7% which means that this increase is actually a reduction in real terms.

“The Scottish government’s own data reveals that two-bedroom private rented sector (PRS) rents over the last eleven years have risen at a rate similar to inflation (25.1% rent increase compared to inflation of 24.3% over the same period).

Discover our Buy to Let Mortgage Broker services.

“Too often the focus on rent rises produces a headline figure rather than one which is adjusted for inflation. This is like saying a pint of beer should be the same price in 2022 as it was in 2010. Everybody knows that is ridiculous but when it comes to the private rented sector many people seem to ignore the fact that rents, like all goods and services, must rise each year by at least inflation.

“I do believe that rents will increase much more in the coming year due to skyrocketing inflation and the cost-of-living crisis. Hardest hit will be those properties which are let on an all-inclusive basis including bills as the soaring cost of utilities will be a particularly strong driver of rising prices.

“Landlords, investors, and agents should all take care in explaining the reasons for rent increases whilst tenants, their representative organisations, and politicians must also take a realistic approach. Rental prices must rise to keep up with inflation and that such increases are entirely necessary to cover greater costs.”

Source: Property Industry Eye

Discover our Mortgage Broker services.

Landlords confident for buy-to-let market outlook

Marketing No Comments

Two-thirds (67%) of landlords are confident about the buy-to-let market outlook in 2022, according to Stephanie Charman, head of strategic relationships at Sesame Bankhall Group. The figures were revealed within […]

Read More

Two-thirds (67%) of landlords are confident about the buy-to-let market outlook in 2022, according to Stephanie Charman, head of strategic relationships at Sesame Bankhall Group.

The figures were revealed within Shawbrook’s recent Changing Face of Buy-to-Let Report, which also found that 34% of landlords are planning to purchase another property this year.

Turning to the percentage of landlord clients considering opening limited companies for their buy-to-let properties, almost a third of broker respondents (29%) said that more than 75% of their portfolio clients were debating the move.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

That was according to a poll conducted by intermediary-only specialist buy-to-let lender CHL Mortgages during a Lender Spotlight webinar session, held in conjunction with Knowledge Bank.

Charman said that the rise in the number of landlords planning to buy this year is encouraging and has been backed-up by anecdotal feedback from lenders.

She went on to explain that lenders have reported seeing an increase in purchase activity within the buy-to-let sector, especially from landlords diversifying and purchasing HMOs and semi-commercial units.

“Our own forecasts point to a buy-to-let market of around £44 billion in 2022. This is slightly down on last year, with fewer new purchases without the stamp duty incentives,” she added.

Even when recent interest rate increases are factored in, rising rents, alongside competitive product pricing, are providing attractive yields, according to Charman.

Discover our Buy to Let Mortgage Broker services.

Despite these rising rents, a survey conducted by the Social Market Foundation (SMF) shows that 81% of renters said they are happy with their current property, and 85% said they are satisfied with their landlord.

In addition, the survey found that only half of renters expect to leave the private rented sector in the next 15 years, and 13% would be satisfied with long-term renting.

Looking to the average age of tenants, the data shows that, by 2035, more than half of private renting households are likely to include someone aged 45 or older. The Social Market Foundation also believes that couples and families will make up a rising proportion of renters.

“Given the challenges facing prospective first-time buyers in stepping on to the property ladder, the private rental sector continues to play a vital role in fulfilling the UK’s housing needs,” said Charman.

Charman went on to say that other significant buy-to-let drivers include the continued impact of the new Minimum Energy Efficiency Standards.

All buy-to-let properties must now be E rated, with consultations taking place to raise this benchmark to a C rating for new buy-to-let tenancies in 2025 and existing tenancies by 2028.

Within the consultation document from late 2020, it was suggested that the minimum EPC rating should be raised to a band C for all new tenancies by 2025, and all existing tenancies by 2028.

According to Charman, market speculation has suggested these timescales could be pushed out further.

“However, one thing is clear, change is coming and the buy-to-let market will look very different in the future,” said Charman.

When the new rules are implemented, many landlords will have additional upgrade costs to deal with – Charman estimates that for improving EPC ratings, the costs will range from £5,900 to £10,400 per buy-to-let property.

According to Shawbrook Bank’s report, 17% of landlords have already made efforts to improve the energy efficiency of their property, rising to 22% of portfolio landlords.

Of the landlords that had undertaken a refurbishment, 22% had replaced the boiler and heating system in their property, a further 23% had replaced the windows, and 18% had installed new white goods.

Charman believes the speculation around the change in requirements could lead to some divestment and consolidation, particularly among landlords with older, less energy efficient housing stock.

As a result, she said the expectation is that landlords will bolster their portfolio with new build properties.

“With so much change on the horizon, it is vital for advisers and landlords to keep up to date with the latest buy-to-let developments,” Charman added.

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Most tenants happy with property and landlord: Paragon

Marketing No Comments

Tired cliches” about renting have been disproven according to Paragon Bank, after commissioning research which showed the majority of tenants are happy with their experience. Carried out by the Social […]

Read More

Tired cliches” about renting have been disproven according to Paragon Bank, after commissioning research which showed the majority of tenants are happy with their experience.

Carried out by the Social Market Foundation (SMF), a survey of 1,300 tenants found over 80% were happy with their property and landlord.

Conversely, the greatest source of dissatisfaction among this population was the status of being a renter with 34% of respondents attesting to this.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

The report – entitled ‘Where next for the private rented sector?’ – also unveiled tenants’ ambitions.

Only half of respondents expect to leave the private rented sector in the next 15 years, suggesting many intend to remain renting for longer.

Specifically, 13% of respondents admitted they would be happy renting for the long-term.

This could mean a demographic shift among renters with average ages rising.

By 2035, SMF expects over half of private renting households to include someone aged 45 or older. Couples and families will also make up a rising proportion of renters.

Paragon Bank managing director of mortgages Richard Rowntree says these findings demonstrate how many views about renting are “outdated” or “tired clichés”.

“In our experience, the vast majority of landlords seek to provide a good quality home and enjoy a healthy relationship with their tenants; the significant investment in private rented property by landlords has helped drive up standards over the past 15 years and today homes in the sector are generally newer, larger and more energy efficient than ever before,” says Rowntree.

Discover our Buy to Let Mortgage Broker services.

“People from all walks of life now call the private rented sector home and we must strive to create a sector that meets everybody’s needs.”

The SMF includes several recommendations to the government.

These are to increase the stability of tenancy agreements (after 69% respondents supported 24 months as the minimum contract length), giving renters more control over their homes, increase accountability of landlords and improve the standards of private rented properties.

SMF economist, and one of the report’s authors, Aveek Bhattacharya says: “In contrast to the horror stories that get wide circulation, the majority of renters are satisfied with their living conditions and have decent relationships with their landlords.

“It is absolutely right that the government should seek to help the minority with poor standard accommodation and unprofessional landlords. At the same time, it needs to think harder about what it can offer the typical renter – who is largely happy with their circumstances today, but has doubts about whether they want to keep renting long-term.”

Source: Mortgage Finance Gazette

Discover our Mortgage Broker services.

Buy-to-let landlords targeting smaller UK cities and towns

Marketing No Comments

Landlords buying in urban areas are increasingly shifting their purchasing activities to smaller, secondary towns and cities, data analysis from Paragon Bank’s own lending records has revealed. “Landlord demand for […]

Read More

Landlords buying in urban areas are increasingly shifting their purchasing activities to smaller, secondary towns and cities, data analysis from Paragon Bank’s own lending records has revealed.

“Landlord demand for city and town centre property was strong in 2021, with Paragon’s analysis showing completions for house purchases increasing by 100% compared to the previous year,” Richard Rowntree, director of mortgages at Paragon Bank, said.

The strongest increases were seen in locations outside of the UK’s major city centres, according to Rowntree.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

“The strongest growth was not necessarily in the UK’s major cities. Aside from London and Manchester, the top 10 growth locations were in secondary cities or large towns. The likes of Milton Keynes, Luton, Bristol, Northampton and Nottingham experienced strong double or triple-digit growth in completions during the year,” he said.

Milton Keynes experienced a 667% increase in completions in 2021 compared to the previous year. This was followed by Bristol with a 300% increase, Manchester (300%), and Luton (258%).

Other urban locations in the top 10 included Plymouth (183%), Stoke (157%), Northampton (133%), Cardiff (70%) and Nottingham (64%).

Discover our Buy to Let Mortgage Broker services.

Paragon said landlords have been reacting to changing tenant demand, and that is to retain urban living but in smaller towns and cities.

“There appears to be one of, or a combination of, three factors that each of these locations share. They are in commutable distance to a major city, they mostly have vibrant universities, and they have healthy local economies,” Rowntree said.

In London, Paragon’s figures show a 95% increase in buy-to-let completions in the capital during 2021, with landlords concentrating acquisitions in Zones 2 and 3 as they balanced the requirement for yield, availability of property, and tenant demand.

By Rommel Lontayao

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Buy-to-let affordability hits record high

Marketing No Comments

Buy-to-let properties have become more affordable to landlords as the average maximum loan size reached its highest level on record last month. According to a report published by Mortgage Broker […]

Read More

Buy-to-let properties have become more affordable to landlords as the average maximum loan size reached its highest level on record last month.

According to a report published by Mortgage Broker Tools (MBT), the average maximum loan in January was £421,053, a £20,000 increase in just a month.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

The figure also represents a 13% increase when compared to the average from January last year. MBT launched its buy-to-let affordability index in August 2020.

“The latest MBT Affordability Index shows that the average maximum loan size available to buy-to-let investors is now larger than ever before. However, the spread between the average maximum and minimum loan sizes available to landlords has also never been wider,” Tanya Toumadj, chief executive officer at MBT, said.

Discover our Buy to Let Mortgage Broker services.

“For investor clients who want to maximise their leverage, it’s vital that brokers are able to easily identify those lenders that will offer larger loan sizes based on their individual circumstances.”

By Rommel Lontayao

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Buy-to-let loan sizes jump £20k in one month

Marketing No Comments

Buy-to-let loan sizes jumped by 13 per cent last month, meaning the average maximum loan available to prospective and existing landlords is now £421,053. In December, this figure stood at […]

Read More

Buy-to-let loan sizes jumped by 13 per cent last month, meaning the average maximum loan available to prospective and existing landlords is now £421,053.

In December, this figure stood at £401,053, pointing to a £20,000 increase. This means loans for landlords are at their highest level since August 2020, according to research published by adviser platform Mortgage Broker Tools today (February 28).

The buy-to-let sector remained buoyant last year, despite some reports of landlords exiting their portfolios. Purchase activity reached £18bn, up 83 per cent on 2020, according to UK Finance.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

But while the average maximum loan size available to buy-to-let investors is approaching a two-year high, the spread between the average maximum and minimum loan sizes available to landlords has also “never been wider”, according to Tanya Toumadj, chief executive at Mortgage Broker Tools.

“For investor clients who want to maximise their leverage, it’s vital that brokers are able to easily identify those lenders that will offer larger loan sizes based on their individual circumstances,” she explained.

Legal & General Mortgage Club data also published today found searches for landlords with gifted equity grew by 82 per cent last month. This suggests that those in the buy-to-let market may be benefitting from financial support from family members to boost their borrowing power as the loan sizes available to them continue to increase.

Richard Merret, head of strategic development at mortgage club SimplyBiz, told FTAdviser the pandemic has shown people “the robustness of houses as an asset”.

Discover our Buy to Let Mortgage Broker services.

In 2021, the price of a typical UK home grew to £254,822, up nearly £24,000 over the year.

Merret also said an interest in holiday letting has increased, due to the tax benefits and the “ease” of arranging it via an app. “Airbnb has made being a holiday-let landlord more accessible,” said Merrett.

A series of regulatory changes to the buy-to-let sector has, however, made it harder to enter the market. So advisers can better understand these regulatory changes – which include a 3 per cent stamp duty surcharge, more stringent affordability tests and reforms to mortgage relief – SimplyBiz has launched a series of virtual academies.

Meanwhile, some investors are now looking to make gains off cryptocurrency rather than off a housing portfolio.

One investor told FTAdviser in December that with property producing average gains anywhere between 5 and 10 per cent a year, he was drawn to the minimum advised return of around 30 per cent to be made from cryptocurrency in just three to six months on less money.

By Ruby Hinchliffe

Source: FT Adviser

Discover our Mortgage Broker services.

Buy-to-let sector has increased by £239bn since 2017

Marketing No Comments

New research conducted by the property lending experts, Octane Capital, claims that over the last five years the buy-to-let sector has increased by around £239 billion. By analysing the level […]

Read More

New research conducted by the property lending experts, Octane Capital, claims that over the last five years the buy-to-let sector has increased by around £239 billion.

By analysing the level of privately rented stock across all UK regions the lending experts were able to obtain the worth of the buy-to-let sector. This was then compared to values during 2017 to uncover changes over the past five years.

Current buy to let market value

The findings show that based on current market values within the UK rental sector, the current value of the UK’s buy-to-let stock is £1.7 trillion.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

The capital of England makes up 19% of the UK buy-to-let properties as this has the highest total worth of the UK buy-to-let sector. It is estimated that around 1 million private rented homes are in London and these are worth more than £500 billion.

The second most valuable buy-to-let market is in the South East of England as the buy-to-let market has a value of £247 billion. This is then followed by the East of England which has a value of £168 billion, the South West is valued at £156 billion, and the North West is valued around £110 billion.

The property lending experts estimate that the UK’s buy-to-let market has increased by 16.8%. This means it has climbed by £239 billion since 2017.

Buy to let market uplift

The figures show that London had the largest uplift in buy-to-let market value as it jumped by £57 billion. The South West increased by £34 billion and the East of England jumped £27 billion.

Discover our Buy to Let Mortgage Broker services.

While the level of privately rented homes has remained low across the UK over the last five years, the total value of the buy-to-let sector has risen sharply because of house price growth.

Chief executive officer of Octane Capital, Jonathan Samuels, concludes: “The government has tried its hardest to dampen investment into the private rental sector in recent years, with a string of legislative changes around tax relief, stamp duty and tenant fees reducing the profitability of buy-to-let investments.”

“The pandemic has also proved problematic for some landlords who have suffered lengthy void periods due to factors such as the tenant eviction ban and a reduction in rental demand across our major cities, in particular.”

“Despite all of this, the sector has stood tall and continues to provide the vital rental market backbone that so many are reliant on.”

“At the same time, the nation’s landlords have benefited from a considerable level of capital appreciation on their buy-to-let investment and the value of the sector as a whole has increased substantially.”

“Let’s just hope that whisperings of a higher rate of capital gains tax remain just that, as any further increase could spur a reduction in available stock, causing the total value of the market to decline in the process.”

By Yasmin Watson

Source: Introducer Today

Discover our Mortgage Broker services.

Buy-to-let landlords are adapting well to incoming EPC standards

Marketing No Comments

The government’s proposal to ensure that all new rental properties have an EPC rating of at least a C by 2025 or 2026 is already shaping investor buying behaviour, according […]

Read More

The government’s proposal to ensure that all new rental properties have an EPC rating of at least a C by 2025 or 2026 is already shaping investor buying behaviour, according to the latest monthly lettings index from Hamptons, part of Countrywide.

While the proposal remains at consultation stage, many landlords are already hedging their bets, the agency says.

So far this year, the share of homes bought by investors with an EPC rating of A-C is running at 50%, the highest figure on record, and up from 39% in 2021 and 33% in 2020.

This uplift has been driven by two factors. Firstly, landlords have bought more energy efficient homes where improvement works have already been done. Secondly, there has been a shift towards investors purchasing newer homes, particularly flats, built within the last decade. These properties typically carry much better EPC ratings, with almost all awarded a B or C ranking.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

Investors move towards new build flats means London’s landlords tend to buy the most energy efficient buy-to-lets anywhere in England and Wales. Here, two-thirds – 66% – of new purchases made this year already had an EPC rating of C or above. While further North, investors are more likely to buy higher yielding but older and less energy efficient terraced housing stock. Just 34% of investors in the North East bought a buy-to-let with an EPC rating of C or above.

As well as reducing emissions, the push for higher EPC ratings will also save tenants money. The average tenant moving from a home rated D up to one rated C will save an average of £285 per year on their gas, electricity and water bill at current prices. A tenant moving from a home rated E to one rated C will save £725 annually. While most homes with an F or G rating can no longer be let, the savings from an upgrade to C stand at £1,348 and £2,404 respectively.

If all privately rented homes with an existing EPC rating of D-G were upgraded to at least a C, it would save tenants in England £844m in utility bills each year, or £396 per household. These improvements would leave the average privately rented household paying £326 less in utility bills than the average owner-occupier.

Discover our Buy to Let Mortgage Broker services.

Share of landlord purchases with an A-C EPC rating (2022)

London66%
South East56%
South West55%
East of England52%
East Midlands48%
West Midlands45%
North West42%
Yorkshire & Humber40%
Wales40%
North East34%
England & Wales50%

Rental growth continued to cool after hitting record highs over the summer months. January 2022 saw average rents rise 7.0% across Great Britain compared to the same time last year, with the rate of growth falling in all but one month since a peak of 8.7% was recorded in July 2021.  The moderation in growth has been underpinned by slowing rental rises across Northern England, which has in part been offset by faster growth across London in recent months.

After 21 consecutive months, January saw rents in Inner London return to pre-Covid levels.  Rents rose by a record 17.3% annually in Inner London to average £2,546 pcm – identical to the March 2020 figure and 29.6% above the mid-Covid low of £1,964.  Meanwhile in Outer London, where rents now stand 9.9% above their pre-pandemic peak, average rents rose 4.0% year-on-year to hit £1,851pcm.

Table 2: Average rent on a new let

Jan-21Jan-22YoY Change (%)YoY Change (£)
Greater London£1,842 £1,9626.5%£120
   Inner London£2,171 £2,54617.3%£375
   Outer London£1,780 £1,8514.0%£71
South East£1,177 £1,2264.2%£49
South West£907 £1,02012.4%£113
East of England£1,049 £1,0974.6%£48
Midlands£720 £7778.0%£57
North£686 £7377.3%£51
Wales£680 £7429.0%£62
Scotland£682 £76111.7%£79
Great Britain£1,055 £1,1297.0%£74
Great Britain (Ex London)£853 £9147.1%£61

Aneisha Beveridge, head of research at Hamptons, said: “By removing the least energy efficient rental homes from the market, government policy has already picked the lowest hanging fruit.  But extending this plan to upgrade homes with a D or E rating up to C will impact a far larger number of households, while generating smaller savings for tenants.  The policy will mean that the average tenant will eventually pay lower energy bills than the average homeowner, although it’s likely to remove some rental homes from the market, putting further pressure on stock levels.

“Given it will prove impossible for all homes to secure an EPC rating of at least a C without significant cost, it’s likely to mean older homes will become considerably less attractive to landlords.  Instead, investors may focus their strategy on buying new builds, with rental homes becoming concentrated in blocks or streets where properties already hold a C rated EPC certificate or where it’s possible to achieve this without significant work.

“The recovery in Inner London rents back to where they were on the eve of the pandemic marks a milestone for London’s landlords.  With Inner London recording the largest ever month-on-month increase between December and January, it appears the recovery in rents still has plenty of steam.  The level of pent-up demand coupled with a lack of stock is likely to support high rates of rental growth over the coming months.”

By MARC DA SILVA

Source: Property Industry Eye

Discover our Mortgage Broker services.

Average monthly rent in England now £993: Goodlord

Marketing No Comments

The average cost of rent across England rose from £985 in December to £993 in January, according to the latest rental index from Goodlord. Rents climbed to three-month highs at […]

Read More

The average cost of rent across England rose from £985 in December to £993 in January, according to the latest rental index from Goodlord.

Rents climbed to three-month highs at the start of this year, as tenant demand and stock shortages drove prices up past record rental averages seen in October 2021.

Average rents in Greater London now stand at £1,675, meaning they are 126% more expensive than in the North East, which houses the cheapest properties.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

However, the North East had the biggest increase in average rent prices over the month, with a 3% hike. Average costs rose from £716 to £740.

“The pace of the market throughout the winter continues to surpass predictions. Rents are continuing to creep up as tenants compete for the best properties and, as inflation bites, the rising cost of rent is beginning to outstrip salary growth,” says Goodlord chief operating officer Tom Mundy.

The speed at which properties changed hands, however, decreased slightly over the month from December, according to the lettings platform.

Discover our Buy to Let Mortgage Broker services.

The average void period in England rose slightly from 18 days in December to 20 days in January.

“We wouldn’t expect to see record-breaking low voids during January, particularly in light of the huge market activity seen in December, so the small increase in void averages we’re seeing this month isn’t unexpected,” adds Mundy.

According to Mundy, UK landlord optimism, despite being on the rise, could take a substantial hit as tenants struggle to pay bills over the course of 2022.

“The overall market picture is still very strong compared to 2021. Landlords won’t be struggling to find tenants over the coming months but the rising cost of living may start to affect certain regions sooner rather than later.”

Source: Mortgage Finance Gazette

Discover our Mortgage Broker services.