As we carefully make our way out of lockdown 2021 house prices have hit record heights, increasing by an average of 8.9% so far this year, and that brings good news for landlords. We’re now in a situation where renting is accessible or cost effective compared to buying, and landlords have noticed!
As house prices rise, so does rent. Despite the pandemic, rent has gone up by 2.9% on average across the UK, with an average of £996 per month. It’s easy to see the benefits of becoming a landlord when other industries are only just starting to recover from an awful year.
‘For the first time in four and a half years, a higher proportion of landlords are intending to expand their portfolio’, with 19% planning on buying a property in the next 12 months. That probably has something to do with the 31% of landlords seeing an increased demand in the last 3 months.
Confidence among landlords is unsurprisingly at its highest point in the last 3 years, with 44% of landlords feeling good about their prospects (up 25% since the start of the pandemic a year ago). So, what does this mean for you?
If you’re thinking about expanding your portfolio or purchasing your first Buy to Let (BTL) property, you may need a mortgage. Over 60% of landlords are planning to use a BTL mortgage to fund their next purchase, and with an average of 7.3 properties per portfolio, that’s a lot of paperwork!
The good news is, independent mortgage brokers, like us, are here to help. Whether you’re stepping into the BTL market for the first time or you’re a professional landlord, our expert advisors will find the right deal for you, manage the paperwork, and oversee your purchase from start to finish.
Almost 1 in 5 landlords planning to expand their portfolio, and 29% need to remortgage in the next 12 months. Are you ready for the next step? Book a free no obligation appointment with an expert Advisor to find out.
About the Author
Dan is one of the newest additions to the team, having joined Warners as marketing manager during Lockdown 2020. Dan is the chief writer for our blog, social media channels, and author profiles…
Source: BVA BDRC Landlord Panel research Q1 2021. / Homelet Rental Index