One in 10 landlords wants to buy another investment property in the coming year according to a new survey.
This compares to just three per cent at the end of last year, according to research by specialist insurance provider Simply Business.
At the end of 2019 some 82 per cent of landlords claimed they had no plans to acquire another property in 2020, while just three per cent were intending to add more than a single property to their portfolio.
Now it seems attitudes have changed, despite Coronavirus, as landlords look to take advantage of the Chancellor’s stamp duty holiday implemented in July.
Soon after the stamp duty holiday was implemented, a tenth of landlords said they were now planning to purchase more properties and build out their portfolio, and just five per cent said they had any intention to sell any existing properties.
The insurance firm says this rise in confidence could lead to a spike in investments away from the city, including in the countryside and coastal towns.
At the end of last year 29 per cent of landlords already believed properties in city centres no longer represented a worthwhile investment.
Now two lockdowns may have pushed up renter and homeowner demand in greener towns and villages, with recent figures from Rightmove also revealing that property searches have doubled for homes in small towns and villages with populations less than 11,000.
“The Coronavirus outbreak and consequent lockdowns have been transformational in UK renters’ attitudes towards property, and therefore where landlords are looking to make their next investment” explains Alan Thomas, UK chief executive at Simply Business.
He adds: “The pandemic has resulted in people spending more time at home – both for work and leisure, while many of the benefits of city living have been impacted. It’s no surprise to see that renters are valuing larger properties with outdoor space.
“There appears to be a shift in terms of what is considered a desirable property by tenants, and residential landlords – crucial to both the economy and the local communities where they provide housing – along with the market in general, are reacting to this.
“What is clear though, is that the UK buy to let market is going through somewhat of a transition, driven by a move away from the previous demand for city centre properties.”