The housing and mortgage markets have faced their fair share of challenges this year. From administrative and operational problems to the economy impacting supply and demand, there hasn’t been a dull moment. Here’s a buy-to-let update.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Buy-to-let update
Thanks to government support through schemes like the stamp duty holiday, the effects haven’t all been negative and with quick thinking, most mortgage providers have been able to carry on with business as usual.
Unfortunately, not everyone has fared so well. Landlords have been drawing the short straw for years, and some were hit hard during the pandemic. Others have been able to seize opportunities created during the pandemic.
Opportunities for new landlords
There has been an influx of new landlords.
According to landlord insurance comparison site, Quotezone, there has been a 22% increase year-on-year in properties owned by landlords for less than a year.
Just over half (52%) of landlords used cash to purchase properties in 2020, the lowest reported figure on record, which indicates buy-to-let is becoming a viable option for more UK buyers.
Additionally, according to Moneyfacts, around 65% of buy-to-let mortgage deals are now available to beginner investors. This time last year, products for first-time landlords accounted for only 61% of the market.
The stamp duty land tax holiday might be responsible for the surge in new landlords trying their hand at buy-to-let property ownership. Regardless of what is driving the trend, it’s clear that the BTL market remains in a good place, even after a rough 2020.
Thinking of getting into the buy-to-let market?
Experts expect even more opportunities for all types of landlords, investors, and developers moving forward. If you’re thinking of getting into property investment, don’t hesitate to reach out to us to help you get started.
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