The north of England, supported by the Northern Powerhouse concept, has already attracted a lot of investment, helping to drive up property prices and rental values across many areas, led by Manchester, and a new survey suggests that the initiative will almost certainly support further growth across the region.
A fresh study by Legal & General Mortgage Club reveals that 80% of brokers forecast that the north of England will become a ‘landlord hotspot’ over the next 12 months.
Brokers who attended Legal & General Mortgage Club’s recent buy-to-let forum event were asked questions regarding the development of the buy-to-let market following the series of legislative changes that came into effect last year.
As a result of the legislation, over two thirds of brokers (69%) predict that landlords will streamline their portfolios, selling properties with lower yields, and 45% predict that landlords will look to invest in university towns and student accommodation.
Jeremy Duncombe, director at Legal & General Mortgage Club, said: “Over the past 12 months, the buy-to-let market has experienced a myriad of legislative changes. Today’s research from Legal & General Mortgage Club’s inaugural buy-to-let forum shows one of the impacts of these developments, with developers looking north for value. Landlords are resourceful, and this demonstrates the resilience of the market, despite many changes.
“The last year has been a particularly challenging year for buy-to-let. The Stamp Duty hike, coupled with the changes to tax and the PRA legislation affecting landlords with four or more properties, has undoubtedly impacted the purchase market in particular. However, it is reassuring to see that confidence in this essential tenure remains as landlords respond and adapt to this new landscape.”