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Landlord confidence high on back of fast-rising capital values

Landlord confidence remains high with a third of those questioned in a surveying plan to expand their portfolio in the next 12 months.

Shawbrook Bank says 34 per cent of landlords in the UK are planning to buy at least one property within the next 12 months. 

Despite the challenges of the global pandemic, house prices have continued to rise and remain at record levels, enticing landlords with the prospect of high rental yields. 

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Of the 34 per cent of landlords that plan to buy at least one property within the next 12 months, 14 per cent said they aim to buy more properties than they had initially planned, showing trust in the market moving forwards.

There is strong expectation that capital growth will continue over the next year, with over two-thirds saying that they have confidence in the market over the next 12 months.

The confidence in the market has also shown that landlords are planning to extend their portfolios and buy in new areas. 

Some 13 per cent of landlords plan to buy properties in a new location. Of these a third are planning to buy in urban locations, while another are considering specific rural locations. 

The north of England is proving particularly popular as 23 per cent of those landlords intending to extend their portfolio, are planning to buy in northern regions.

The race for space also means that as well as different locations, landlords are considering alternative property types. Around 12 per cent of landlords said they are now looking to buy a different type of property with semi-detached and terraced houses the two most popular options.

Emma Cox of Shawbrook Bank comments: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has stood firm and house prices have continued to soar in price. 

“This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months. Their buying activity and trends show that the market is likely to remain strong over the short term. “

To view the full report, click here.

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  • George Dawes

    Really ?

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    So 66% are not planning to buy. This LL is planning to sell several properties - all because of EPC C - will the 34% make up the difference? I think not. IMO the PRS is about to become a tight squeeze.

  • George Dawes

    I’ve got mixed use properties so I’ve got brain damage from residential epc crap and even more hassle from commercial business rates garbage

    And they think landlords have an easy life … if only

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    Not high rising Capital Value but high depreciation of Currency Value.

  • Keith  Johnson

    As property becomes more expensive the rental yields coupled with punitive taxes, high inflation makes property investment less attractive, let's face it if your yields are less than 7% it's just not worth it

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    Kieth. My yields are less than half that due to high property prices in London, higher running costs and higher Compliance, fees / costs / licensing etc’ pound for pound by comparison in London to other parts of the UK. Which have to be factored in when working out yields unless Farmer or Council Economics.

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