While there has been some evidence of landlords wishing to leave the rental market in 2020, it is pleasing to see there is still enough to suggest many professionals are looking to enter or expand in the lettings sector. There is a considerable amount of optimism surrounding the property market for this year, but there will also be a high level of demand for rental property.
A study undertaken by a specialist mortgage lender Precise Mortgages, states that a lot of landlords intend to buy property in the next 12 months. The survey looked at the entire country, and they found there are considerably more landlords intending to buy as opposed to selling in 2020. This will be positive news for tenants looking for rental property, but it should also give confidence to the lettings market.
Landlords looking to buy property suggests there is confidence in the market
When there is a body of professionals looking to invest in the market, it indicates there is confidence. When you think about the demand for rental property, in places like Bridgwater and the South West of England, let alone the whole of the country; there is an opportunity for landlords to find willing tenants.
The study pinpoints 68% of buyers plan to fund the purchase of the rental property with a buy-to-let mortgage. 18% of respondents state they will release equity from their existing rental properties.
Brokers have a prominent role to play in assisting landlords
It looks as though brokers will continue to dominate the market in assisting landlords own rental property. Close to 73% of respondents suggest landlords used a mortgage broker or an intermediary in arranging their most recent buy-to-let mortgage.
Alan Cleary is the Managing Director of Precise Mortgages, and he said: “The increasing professionalisation of the buy to let market means landlords are becoming more focused and selective in where they buy properties and how they fund their purchases.”
He continued by saying; “Recent rate cuts across the buy to let market are highlighting the opportunities to increase portfolios and profitability as well as underlining the need for expert advice from brokers particularly among landlords with bigger portfolios.”
It is important landlords remain up to date with mortgage options. The cost of arranging a mortgage, and making a monthly mortgage payment, underpins everything a landlord does. It is imperative landlords have a budget in place, and find a solution which allows them to let property in an effective manner.
These are challenging times for landlords, but there is considerable support on offer to letting industry professionals. At Andrew Lees, we are more than happy to provide you with support and guidance when it comes to managing your property.
If you’re a landlord looking for support in the buy-to-let market, or you would like guidance on how to enter the market, get in touch with Andrew Lees. e can arrange a property valuation for you if required. We are pleased to say we have supported many Bridgwater landlords, as well as landlords operating across Sedgemoor & Taunton Deane, and we look forward to helping you.