A more attractive rental yield is likely to play a key role in persuading landlords to buy additional property, therefore expanding the supply of rental property in an area. In the long-term, this is also of benefit to tenants.
There has been a survey undertaken by Cherry, a mortgage adviser forum, and the findings suggest an increased in demand from individuals and from limited companies.
Demand is evolving from landlords
Over 30% of brokers have reported an increase in individuals buying to let. 26% of brokers said they have arranged deals for limited companies operating in the buy to let market.
57% of mortgage brokers who responded said they have experienced an increase in acquisitions and 12% of brokers said they have experienced an increase in remortgage deals.
7% of brokers have stated an increased in demand for properties which are classed as houses in multiple occupation (HMOs) and 3% of brokers have experienced an increase in enquiries for lending on holiday lets and multi-unit block of flats.
There has also been an increase in short-term lending, with 7% of brokers admitting to helping clients source bridging solutions.
Donna Hopton is a director at Cherry, and she said; “It’s clear there has been a spike in buy-to-let activity in recent weeks. Whereas the BTL market has been dominated by remortgage business in recent years, it is purchase enquiries that are currently keeping brokers busy. This window of opportunity for reduced stamp duty land tax will certainly be helping to drive this demand, but we are seeing that the market is generally buoyant, which is a positive sign for advisers, and the economy.”
The student market drives rental demand in Nottingham
A study carried out by Howsy indicates how appealing rental options in Nottingham are for buy to let landlords, especially with the student market in place.
Nottingham Trent University, with an expected rental yield of 6.4% was listed as the seventh best area for student accommodation buy to let investment in the United Kingdom. If you exclude Scottish locations to only consider English options, Nottingham is ranked fourth.
We know the Nottingham rental market is a thriving one, but it is always pleasing to see this confirmed by statistics.
Founder and CEO of Howsy, Calum Brannan, commented; “Many students will be searching for accommodation now that they know where they stand with their results, and this huge influx of demand is very positive news for buy-to-let landlords in uni towns across the UK. Of course, student tenants can have their downfalls, but so can any tenant in the rental space and the pros far outweigh the cons in terms of the carousel of consistent demand and income that they supply.”
We offer property management, property to rent and property for sale in Arnold, Woodthorpe, West Bridgford, Hucknall, Carlton, Wilford, Mapperley and throughout the Nottingham area. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Holdencopley today by calling us on 01158969800 or emailing email@example.com.