Confidence is high as landlords plan to expand

30th June 2021

By Will Leyland

Summer is here, the temperature is rising, the mood is following, and the less said about holidays the better.

Ok, so we’re not quite out of the woods completely yet, but the time is nearly upon us where the government feel that they can lift all remaining restrictions, and with it the last remaining breaks on the economy lingering from the pandemic.

The economy itself, to all intents and purposes, seems to be rocking. Save from some sectors such as hospitality that are still waiting for the full green light, most people are slowly but surely returning to normal now, and it’s a warming sight to see people back in pubs, bars, restaurants and shops.

UK property, as we know, emerged largely unscathed from the pandemic, unlike vast swathes of the UK economy, and in many instances even thrived under the pressure.

Now we’re emerging from the worst, it’s perhaps unsurprising to see the sector really moving up a gear with prices and demand shooting up significantly since April this year.

Landlords confident

Perhaps as you might expect, landlords are currently feeling confident about their prospects in the market this year and beyond, as all performance indicators are currently pointing towards a successful few years.

This appears to have been highlighted further by new research released by Paragon Bank, who conducted a survey on UK landlords.

As reported by the Buy Association, “The number of landlords who plan to expand their portfolios is higher than those who intend to reduce. This is the first time this has happened in four years. The research includes nearly 900 landlords and was carried out by BVA BDRC. When asked about their intentions over the next year, 19% of landlords said they plan on investing in property.”

This represents a staggering vote of confidence in the market from a group of investors that had, until recently, been fairly pessimistic when polled about how they saw the market.

Indeed, thanks in part to government incentives, the pandemic appears to have rekindled people’s interest in the property market, and expanding their living space which, in turn, has meant that prices and rental demand has grown too.

Rather than having been a bad or forgettable year for landlords and investors, 2020 appears to have potentially been the beginning of a new golden era for property investment in the UK as people prioritise their homes once again.

As an illustration, home DIY products had record sales in the past 18 months as people looked to improve their homes, but also many estate agents and property websites such as Zoopla and Rightmove saw record traffic as people decided to make the move.

The Private Rented Sector (PRS) was no different, and has seen record traffic and activity. So, the advice for landlords and investors this year? If you’re looking to expand your portfolio or increase your investments, then you’ll be facing stiff competition so it’s worth getting a move on.

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Confidence is high as landlords plan to expand

30 June 2021

Summer is here, the temperature is rising, the mood is following, and the less said about holidays the better.

Ok, so we’re not quite out of the woods completely yet, but the time is nearly upon us where the government feel that they can lift all remaining restrictions, and with it the last remaining breaks on the economy lingering from the pandemic.

The economy itself, to all intents and purposes, seems to be rocking. Save from some sectors such as hospitality that are still waiting for the full green light, most people are slowly but surely returning to normal now, and it’s a warming sight to see people back in pubs, bars, restaurants and shops.

UK property, as we know, emerged largely unscathed from the pandemic, unlike vast swathes of the UK economy, and in many instances even thrived under the pressure.

Now we’re emerging from the worst, it’s perhaps unsurprising to see the sector really moving up a gear with prices and demand shooting up significantly since April this year.

Landlords confident

Perhaps as you might expect, landlords are currently feeling confident about their prospects in the market this year and beyond, as all performance indicators are currently pointing towards a successful few years.

This appears to have been highlighted further by new research released by Paragon Bank, who conducted a survey on UK landlords.

As reported by the Buy Association, “The number of landlords who plan to expand their portfolios is higher than those who intend to reduce. This is the first time this has happened in four years. The research includes nearly 900 landlords and was carried out by BVA BDRC. When asked about their intentions over the next year, 19% of landlords said they plan on investing in property.”

This represents a staggering vote of confidence in the market from a group of investors that had, until recently, been fairly pessimistic when polled about how they saw the market.

Indeed, thanks in part to government incentives, the pandemic appears to have rekindled people’s interest in the property market, and expanding their living space which, in turn, has meant that prices and rental demand has grown too.

Rather than having been a bad or forgettable year for landlords and investors, 2020 appears to have potentially been the beginning of a new golden era for property investment in the UK as people prioritise their homes once again.

As an illustration, home DIY products had record sales in the past 18 months as people looked to improve their homes, but also many estate agents and property websites such as Zoopla and Rightmove saw record traffic as people decided to make the move.

The Private Rented Sector (PRS) was no different, and has seen record traffic and activity. So, the advice for landlords and investors this year? If you’re looking to expand your portfolio or increase your investments, then you’ll be facing stiff competition so it’s worth getting a move on.

Will Leyland

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