Why do nearly half of all current landlords expect to increase their portfolio?
- 1st December 2016
- Landlord Property News
Now with many unknown political questions clearer, 46% of landlords expect to invest in more properties
The London buy to let market remains confident and pretty unruffled despite all the apparent buffetings it has received in the last year or so, such as changes to the tax regime, the imposition of a stamp duty surcharge and the Brexit vote.
With the latest major unknowns out of the way – the Trump vote, and the Autumn Statement – and the property market having factored in all the changes, more and more believe that now could be a good time to look around for new investments.
A Bank of Ireland survey amongst landlords across the UK with two or more properties showed that 46% of them expect to increase their portfolio over the next few years and half of householders who are not yet in BTL would like to become landlords so long as the figures stack up.
In London a healthy realism has returned to sellers’ price expectations, which can sometimes be pumped up artificially by over-excited or inexperienced observers.
Alexander Rawlinson, Director at ludlowthompson, continues: “The fundamentals remain solidly in place. London continues to attract a huge inflow of newcomers with great career prospects and there is an underlying shortage of suitable accommodation for them.
“Now could also be a good time to take advantage of one of the numerous BTL mortgages on offer at current low rates; because if prices begin to rise as expected this can often signals higher interest rates too.
“There are still very few other asset classes which can beat BTL for long-term performance.
“Since 2000 the total annual return from BTL in London, including capital appreciation, has been 10% and current yields are still way above what you can expect from a bank deposit."
London continues to attract a huge inflow of newcomers with great career prospects and there is an underlying shortage of suitable accommodation for them.
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