With the residential property market reopening for business, investor confidence in the sector is starting to improve with Mortgages for Business among a growing number of companies encouraging buy-to-let landlords to take advantage of existing market conditions and potential ‘bargains’ by preparing to add to their property portfolios this year.
The buy-to-let broker believes that there is plenty of room for negotiations when buying property, especially in London and the Home Counties.
Steve Olejnik, managing director of Mortgages for Business, said: “We can’t know exactly what’s going to happen to the market, but we expect a temporary, short-term fall across London and the south east in the region of about 15%.
“But there’s no question that if you invest in bricks and mortar now, with a bit of haggling during the process, you are going to see a lot of long-term capital growth.
“I think values will be back at February 2020 levels by the spring or summer of next year.
“Landlords who have not asked for a repayment holiday will be well set to snap up some bargains with the help of lenders have demonstrated a willingness to lend since the third or fourth week of the pandemic.”
Mortgages for Business has identified vanilla BTL properties and HMOs as good investment options at the moment.
Olejnik added: “Yields from the various types of property remained pretty steady throughout 2019 and suggest property will offer a better return than many other investments in the future – especially to smart, professional landlords looking outside the box at HMO investments.
“Talk to your broker now. If you want to grow your portfolio, you will want to build up a war chest when you next remortgage and should look to refinance for capital.”