Confidence Amongst Landlords In Rental Sector
It has been a tough time for all of us, but it is easy to see why landlords have struggled in the past year. However, it looks as though there are still many landlords who feel confident about what will happen in the future.
At The Letting Line, we are on hand to assist local landlords as best we can. If you are looking for guidance or assistance, please get in touch, and we will be more than happy to assist you.
Some landlords are keen to expand their property portfolio
A property investment consultancy, Knight Knox, spoke to 500 landlords in the UK, and 27% of respondents said they plan to expand their property portfolio in the year which lies ahead. Of the landlords who are keen to expand their portfolio, 35% of respondents say the stamp duty holiday has shaped their decision.
Andy Phillips, Knight Knox’s commercial director, said: “The last 12 months have been a total rollercoaster for the housing market. Lockdown 1.0 temporarily halted activity before Rishi Sunak’s announcement of the stamp duty holiday led to the industry facing one of the busiest periods for a decade. For landlords, the incentive has provided a welcome opportunity to purchase more properties while making significant savings. Appetite for rental property is high – particularly given that the financial impact of the pandemic could be affecting people’s plans to purchase – so buy-to-let is a fantastic investment in the current climate.”
Other findings from the study include:
On average, landlords in the UK earn more than £20,000 net income per year from renting out property
88% of landlord feel “confident” or “very confident” about how the buy-to-let market will perform in the next 12 months
Two-thirds of landlords claim the pandemic hasn’t impacted their tenancies
Only 4% of landlords were looking to reduce their portfolio in the next year
Andy concludes: “The property market plays a crucial role in the country’s economy, so it’s encouraging to see that during times of crisis, the government has been forthcoming with lifelines to help keep the wheels of industry turning. As long as developers can continue to bring high-quality property to market and landlords have the confidence to invest, the sector will remain buoyant and consumer demand for rental housing can be fulfilled.”
Environmentally-friendly solutions drive the rental market
One aspect where landlords are looking for change is with respect to environmentally-friendly matters. Green solutions help tenants save money, and offer short and long-term benefits for landlords.
One area where landlords might benefit from making their rental property more energy efficient comes with green-mortgages.
According to research carried out by Mortgages for Business, 60% of landlords state they are interested in mortgages which reward energy-efficiency improvements at their rental property.
Jeni Browne is the director of Mortgages for Business, and said: “Much of the UK’s housing stock is very energy inefficient, making our homes a major source of greenhouse gas emissions. Improving the energy efficiency of the UK’s stock of housing is a priority in the fight against climate change.”
Jeni continued by saying; “A green mortgage means that, once they can confirm they have a revised energy rating for their property, the right lender will recalculate their mortgage rate at a discount. There are various mortgage products out there but the best are applied on completion of an energy efficiency project and applied for the lifetime of a mortgage. Given housing accounts for such a significant chunk of the UK’s carbon emissions, it’s great that landlords are so interested in making greener choices - spurred on, no doubt, by the fact landlords are rushing to upgrade their properties to meet new EPC rating rules by 2028. Whatever the reasons, landlords now appear interested in joining the battle to combat climate change. That hasn’t always been the case.”
If you are looking for guidance or assistance in the Enfield rental market, we can help. At The Letting Line, we are a specialist letting and property management agent serving Enfield, Barnet, Potters Bar, Brookmans Park and surrounding areas.
We can arrange a free valuation for you, and if you are looking to contact us, please call us on 020 8342 1234.