0:03 AM, 19th December 2024, About A year ago 6
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Portfolio landlords are increasingly looking to expand their properties rather than sell, according to research from United Trust Bank Mortgages.
The findings of more than 130 BTL mortgage brokers, found that 58% of respondents had more landlord clients seeking to grow their holdings than those looking to offload properties.
This suggests a level of resilience in the BTL market, despite recent economic challenges.
Buster Tolfree, the lender’s director of mortgages, said: “Just as we’re finding in the residential market, mortgage brokers are increasingly helping landlords with specialist BTL mortgages either because of the properties they’re buying and refinancing, or their own circumstances.
“Landlords are looking to acquire more unusual types of properties and in locations which may not suit homeowners but nonetheless make great rental properties, for example flats over or next to commercial.
“These purchases often deliver higher yields than a traditional three-bed semi and help to mitigate the higher cost of borrowing.”
While the private rented sector isn’t as buoyant as it once was due to rising interest rates, brokers report there are still ample opportunities.
UTB found that 60% of respondents disagreed that their BTL business had declined in the past six months.
However, the survey also revealed a divergence in strategies between smaller and larger landlords.
It found that 61% of brokers believe landlords with just one property are more likely to exit the market.
But larger portfolio landlords are seen as more optimistic and actively seeking opportunities, particularly in Houses of Multiple Occupancy (HMOs) and Multi Unit Blocks (MUBs).
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JamesB
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Member Since April 2022 - Comments: 124
7:41 AM, 19th December 2024, About A year ago
“The findings of more than 130 BTL mortgage brokers, found that 58% of respondents had more landlord clients seeking to grow their holdings than those looking to offload properties.”
Not surprised. When I look to offload I don’t need to go to a mortgage broker to arrange that. I have been selling since 2016 and now my remaining portfolio is mortgage free. Funnily enough, I haven’t spoken to a broker in ages.
GlanACC
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Member Since March 2023 - Comments: 1462
12:36 PM, 19th December 2024, About A year ago
As in all of these surveys, a lot depends on the sample size.
dismayed landlord
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Member Since December 2015 - Comments: 290
13:51 PM, 19th December 2024, About A year ago
That’s good . As they replace us ‘leavers’ from the industry new PRS buyers are moving in to take our places.
Therefore there is no crisis in the housing market. Rents need not to go up as supply is being matched with new entrants.
All is well! Excellent news.
Merry Christmas and a very profitable New Year.
Mark C
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Member Since September 2022 - Comments: 47
16:58 PM, 19th December 2024, About A year ago
Reply to the comment left by JamesB at 19/12/2024 – 07:41
Sitting pretty. Being leveraged used to make sense, now it makes no money, because of eye watering rates.
Congratulations!
GlanACC
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Member Since March 2023 - Comments: 1462
17:04 PM, 19th December 2024, About A year ago
Reply to the comment left by Mark C at 19/12/2024 – 16:58
Yup, know what you mean. Had £1.8 million loan at one point. Happily I started to sell just before S24 came in and got rid of all my non LTD company properties.
Cider Drinker
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Member Since December 2023 - Comments: 1522
21:25 PM, 19th December 2024, About A year ago
Company with a vested interest in test in servicing the BTL rental market bury their heads on the sand.