Property & Mortgages

Midlands landlords most likely to increase portfolio size

Midlands home

24% of landlords in the East Midlands and 22% in the West Midlands plan to purchase more properties in the next 12-months, shows a study by BVA BDRC

Landlords based in the midlands were recorded as the most likely to increase their portfolio size, a study conducted by BVA BDRC shows.

The research outlines that 24% of landlords in the East Midlands and 22% in the West Midlands plan to purchase more properties in the next 12-months.

Meanwhile, 8% of landlords in South West and 9% in Central London intend to purchase more properties within the same timeframe.

The data shows that overall, only 14% of landlords intend to purchase property, with the average preparing to buy three.

Looking at property type, 52% of those looking to expand their portfolio intend to do so by purchasing a terraced house.

This was followed by semi-detached properties at 32% and flats at 26%.

Furthermore one in four landlords are targeting HMOs, according to the research.

Nearly two thirds, 63% of landlords plan to fund their next purchase with a buy-to-let mortgage, while 17% intend to do so through releasing equity on existing properties, and 18% said they would purchase a property outright.

Richard Rowntree, managing director of mortgages of Paragon, said: “The proportion of landlords looking to purchase new property has been largely consistent over the past two years, but we are seeing regional variations and also a greater propensity for portfolio landlords to invest in property.

Portfolio landlords have adopted a number of strategies to adapt to the tax and regulatory changes of recent years and we’re seeing trends such as these landlords buying stock from smaller-scale participants as they exit the market, or targeting higher yielding properties, such as HMOs, he said.

Risk Warning:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Comment here

twelve + 2 =