Despite changes in tax regulations, the lettings fees ban and interest rate rises rocking the buy-to-let boat, the market has remained remarkably resilient, with the majority of landlords feeling positive about the year ahead. The annual Shawbrook Bank buy-to-let barometer backs this up, with 65% of investors reporting that feel confident about their property portfolio in 2018.
That being said, many landlords have decided to streamline their portfolios in order to strengthen returns in the changing buy-to-let landscape. Data from Paragon Mortgages supports this, stating that smaller scale landlords and prolific portfolio landlords in particular have been reorganising, with many using downsizing as a method to manage economic changes.
Paragon’s research highlighted a drop in the number of small scale landlords, with the total of those who own between three and five buy-to-let properties falling at the end of last year. The research also showed a reduction in large scale landlords who own in excess of 50 properties, down from 6% to 4%.
The only group increasing their portfolios were middling landlords with between six and 20 properties in their portfolio, a group that increased by 4% in the last 12 months.
For investors looking to offload, current market factors have created the perfect environment to sell, with an influx of first time investors entering the sector. Statistics from the latest HomeLet Rental Index show that rents are on the rise with prices up 2% year-on-year during May. This, coupled with reports that demand for rented homes could hit six million by 2025, means that the buy-to-let sector continues to entice investors.
A shortfall of quality rental accommodation and growing national demand makes for a win-win situation when it comes to selling: vendors have an eager audience of investors waiting to buy for the right price, and buyers can be confident that they are buying into a buoyant and growing market.
yieldit specialises in the sale of tenanted, income generating buy-to-let property from investor to investor. By working with buyers and sellers who see the financial potential of a buy-to-let-property, yieldit provides a platform away from the high-street for simple property sales to take place.