One in six buy-to-let landlords set to expand portfolio in next 12 months

According to a recent report, one in six (17%) buy-to-let landlords are planning to add to their portfolio over the next 12 months. With high yields, compared to bank savings, it is easy to see why.

As we have said before in this newsletter, buy-to-let has consistently delivered high returns for investors and continues to outstrip many other asset classes. For example, long-term landlords with ludlowthompson have seen average annual returns of 9.9% per annum since 2000.

Alongside high returns generated by buy-to-let investments, the fundamental aspects that make the UK and London market attractive remain strong.

Demand is forecast to outstrip supply for some time to come, largely being driven by strong population growth. The latest Government statistics estimate that the population of London alone will grow to approximately 10m by 2035. Demand for rental property is also being underpinned by near full employment in the UK. Historically, as wages rise rental prices also trend upwards, helping to hedge buy-to-let investors against inflation.

With the availability of good buy-to-let mortgage deals now would be a good time for landlords to look to add to their current portfolio. There are numerous attractive fixed rate mortgages on offer, which provide security for landlords over funding costs.

Stephen Ludlow, Chairman at ludlowthompson, says: “With high yields and strong demand, buy-to-let remains attractive for landlords in the long term.”

“New transport and infrastructure developments are also reducing commutes into central London for a larger number of areas. As a result, that is creating larger areas of London that are attractive to young professionals, which is, in turn, creating opportunities for landlords.”

If you are a considering buying a property, please contact Chris Lockley at Jigsaw Mortgages here.

Here is a selection of recent reviews of happy customers of ludlowthompson via Google Reviews:

Stephen, Hannah and Lee in the management team have a done a great job in finding 2 sets of tenants for my flat in the last 3 years. They are responsive, hard working and professional and best of all I have virtually no voids in that period. They take a lot of stress out of the process and I couldn't recommend their Lettings team more highly. Thanks to a great job done.

- Graham Crosby on Google

Stephen, Laura and Hannah make a fantastic team. They were always on the phone to help and advise and keep me updated with what was going on, which was vital to me as I live out of London. Thank you to the whole team. I will be back in 2 years time!

- Alex Cowie on Google