Landlord News

Landlords still looking to expand despite changes

Em Morley - August 17, 2016

A new investigation has revealed that the number of landlords and investors looking to expand their portfolio during the coming year has risen slightly.

Data from the report by Shawbrook Commercial’s Client Barometer found that 58% of buy-to-let landlords are looking to purchase an additional property in the next twelve months.

In January, this figure stood at 56%.

Confidence

The slight increase could be seen as a surprise, given the number of significant changes seen in the last six months. The introduction of the 3% additional stamp duty surcharge and the UK’s historic decision to leave the EU are just two of these alterations to have an impact on the market.

Pleasingly, landlord and investor confidence in the sector has been unwavering, given the severity of the changes.

Further data from the Shawbrook report reveals 57% of people questioned are either ‘very confident’ or ‘fairly confident’ about the market moving forwards six months.

This is only a small drop from 59% recorded in January.

Challenges

Despite many investors saying they feel upbeat bout the future of their investment, many have highlighted the Brexit vote as the largest challenge facing them moving forwards.

42% of those surveyed have said they feel Britain’s exit from the EU will have a negative impact on property investors. Just 14% said the vote to leave would have positive implications.

Stephen Johnson, deputy chief executive and managing director of property finance at Shawbrook, noted, ‘seeing this optimism reflected in investors’ plans to acquire new BTL properties is a promising sign that the specialist market shows no signs of slowing despite uncertainty.’[1]

‘We have not yet seen any real change in customer behaviour and there is still a great deal of activity across the Commercial business,’ he added.[1]

Landlords still looking to expand despite changes

Landlords still looking to expand despite changes

Uncertainty

Mr Johnson went on to say that the referendum result has created uncertainty in the sector, with many investors waiting to see what the impact will be on prices, tenant demand and supply.

Savvy investors however could act swiftly to secure a bargain and add to their portfolio at a discounted price.

‘Whilst the full effects of the Referendum result remain to be seen, it is clear those who have confidence in their business model and a sensible level of gearing are best placed to prosper through any period of uncertainty,’ Johnson concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/more-landlords-looking-to-expand-their-portfolios-over-the-coming-year