Buy-to-let landlords considering the future of their property investment portfolios are optimistic that the next 12 months will be worth investing in.
New research has revealed that more than a third (34%) of landlords plan to purchase at least one more property over the coming year. A further two thirds (67%) say they are confident in the UK property investment market over the next 12 months.
The report from Shawbrook Bank, which used a combination of research from ONS and Ministry of Housing data, as well as an Opinium study, also revealed that flats remain a popular option for landlords. This tallies with recent reports that house price rises have been the most marked in flats and city centres in recent months.
Emma Cox, sales director at Shawbrook Bank, comments: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has stood firm and house prices have continued to soar in price. This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months. Their buying activity and trends show that the market is likely to remain strong over the short term.”
Thinking outside the box: a new location?
Interestingly, the research also showed that landlords are branching out from their tried and tested property investment locations. More than one in 10 (13%) said they are planning to make purchases in a new location, and 36% of these are honing in on urban areas.
The north of England, which is consistently touted as having the best buy-to-let prospects, is especially popular among the landlords surveyed. Almost a quarter (23%) plan to seek new investments somewhere in the north.
In terms of property types, around 12% of landlords also said they will look at different options in the new year to those they have already invested in. Of these, 34% will target semi-detached homes, 31% plan to buy terraces and 27% are looking at flats.
Location and property type are two key areas that landlords can research and use to their advantage when thinking about their next property investment. Both factors can have a major influence in ongoing rental yields as well as capital appreciation prospects.
Looking for new property investment opportunities
With confidence remaining high among landlords and property investors, it seems appetite across the housing market will remain robust into 2022.
Emma Cox comments: “Indeed, with 2021 announced as the “busiest year” for the housing market according to Zoopla, despite recent falls in transactions, it’s clear that the market has fully rebounded from the lows of the pandemic.
“As supply continues to be low, it’s unlikely that we’ll see house price growth slow significantly and as we move into January next year following the seasonal slowdown over Christmas, property investors will be seeking further opportunities to expand their portfolios.”