THE BTL SECTOR LEADS THE WAY OUT OF LOCKDOWN
I think it’s safe to say that we are all ready for lockdown restrictions to ease but only if done in a way which doesn’t hinder our freedom in the future. This is the balancing act which the government has faced over the past 12 months and I certainly don’t envy the continued challenges facing the decision makers.
Every business and individual has been forced to make some tricky decisions over this period and landlords are no different. Landlords have been impacted in many different ways and it speaks volumes of the BTL market, lenders and the advice process to see that so many have continued to remain active during this period, although there inevitably remains some degree of caution. According to the National Landlord Index by Accommodation.co.uk, over half (59.8%) of landlords are waiting for lockdown measures to ease before investing in properties.
The research also highlighted that UK landlords still see the rental market as a safe place to invest especially as the stock market has been so volatile during the pandemic. This desire from landlords to expand their property portfolios in 2021 is reflected in the demand for buy-to-let mortgages with the index revealing that nearly two-fifths (37.8%) of landlords are planning to apply for one this year. As the UK starts to see the benefits the vaccination drive is having on the economy, Accommodation.co.uk says it is “clear” that landlords are optimistic that this recovery will be reflected in house prices long-term.
I couldn’t agree more. Landlords, alongside many of their tenants, have not had an easy ride lately and it’s highly encouraging to see this sustained desire to not only maintain their portfolios but also build on them. A trend which lenders have certainly noticed and increased competition across the BTL lending arena will help sustain this forward momentum in Q2 and beyond.
Ying Tan - 26.03.2021 | Posted in