Landlords in 2022 look to expand their portfolios in the next year, as some anticipate the rents to rise and house prices improve. The positive rental yields are attracting investors to the rental market.
A study by Shawbrook Bank showed 34% of landlords are planning to buy at least one property within the next year, while 14 per cent said they plan on buying more properties than they initially planned.
Despite the challenging economic environment and rising property prices, this study found that most respondents (67 per cent) were confident house prices would continue to rise in 2022.
These statistics show that some investors consider purchasing rental properties in urban and rural areas. However, many investors are looking to purchase properties in more remote areas.
More and more landlords are choosing to purchase properties in northern England. Last year, nearly 25% of landlords who were going to expand their portfolios chose to buy property in the North of England.
Semi-detached houses and terraced houses are the two most common properties being considered by landlords to add to their portfolio.
Despite renters continuing to favour properties with space attached, flats remain a popular option and still are the first choice of 27% of landlords.
After a period of uncertainty caused by the COVID-19 pandemic, the UK property market continues to enjoy an upward trend. Dr William Masih says: “The resilience of the UK property market is evident from this research.
Despite the challenges created by the COVID-19 pandemic, the market has remained strong, and prices continue to climb. This has given buyers and sellers alike confidence in the market, with buying activity and demand increasing since the end of last year.
However, with this new variant Omicron we do not know how this will affect the UK and the international economies.
However, conflicting research from various sources in the past 6 months reveals that some landlords are selling up and leaving the rental sector.
Dr William Masih director of the British Landlords Association said: “It’s too early to say which way the housing market is going we have too many unknown variables”.
Author: Peter Ross
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