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Average rents up for fifth consecutive quarter

Average UK rents increased for the fifth consecutive quarter during Q4 2021, according to data collected by The Deposit Protection Service (DPS).

Average rents reached £834 during the final three months of 2021, an increase of £16 (1.96%) on the previous quarter and a £42 or 5.30% increase on Q3 2020.

South West rents, which traditionally lag behind the national average, drew level for the first time, rising by £19 (2.33%) during Q4 2021, and by £54 (6.92%) from £780, the largest regional percentage increase during the past 12 months.

Average rents have increased across all property types since Q3 2021, with those on detached properties increasing the most; on average by £26 (2.33%) to £1,143, and also rising £88 or 8.34% from Q3 2020.

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The organisation also said that Q4 2021 rents also rose across most of England, with London, the South West, and Yorkshire seeing the largest value rises, contributing to an annual UK average rent increase of just over 4% for 2021.

York saw one of the highest increases, up £71 (9.49%) from £748 to £819 during Q4 2021, a rise of £120 or 17.17% from £699 since Q4 2020.

Conversely, Southampton saw one of the largest falls in rental value during Q4 2021, decreasing £122, (15.12%) from £807 to £685.

Average rents in the North East, traditionally one of the cheapest regions in the UK to rent, increased by £5 (0.91%) from £549 to £554 during Q4 2021, with rents increasing £34 (6.54%) during the past 12 months.

During Q4 2021 London rents increased for the second consecutive quarter, ending 2021 at £1,381, an increase of £42 (3.14%), the highest value regional increase, and a £64 (4.86%) increase on the same quarter during 2020.

The London borough of Islington saw the sharpest value rise in rent during Q4 2021, an increase of £273 (19.6%), from £1,393 to £1,666, added the organisation.

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Matt Trevett, managing director at The DPS, said: “During Q4 2021 rents increased in the vast majority of UK regions and across all property types, with demand for detached properties driving the greatest increase in rental value for these properties.

“Our figures also show that renters were less likely to move during the past 12 months, suggesting lower availability of stock and therefore perhaps more limited options for moving.

“We’re also seeing definitive signs of recovery in London, particularly the return of the popularity of flats in some areas, suggesting that some tenants are coming back to the capital.”

Paul Fryers added: ”There is currently significant pressure on rental stock across the country.

“Reasons are complex, but they include landlords selling up to capitalise on high sale prices, plus a shortage of new build homes as a result of supply chain and raw materials issues.

“We’re hearing stories of landlords receiving unprecedented levels of interest, with some renters willing to pay rents upfront and even stories of some tenants willing to pay over the odds to secure properties.”

By Jake Carter

Source: Mortgage Introducer

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Record 47,400 Buy-to-Let Companies Set Up in 2021

Last year saw a record number of companies set up to hold buy-to-let property. In total there were 47,400 new buy-to-let companies incorporated in 2021 across the UK according to Companies House data.

This is nearly twice the number that were set up in 2017 when it was announced that investors with properties in their personal names would no longer be able to claim mortgage interest as an expense. While individual landlords are effectively taxed on turnover, company landlords are taxed on profit. This has meant that for some landlords – particularly those who are higher rate taxpayers – it has become more profitable to move their buy-to let(s) into a company.

However, the rate of growth in new incorporations fell compared to previous years, with a 14% increase recorded between 2020 and 2021, down from a 30% increase recorded between 2019 and 2020.

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While the number of buy-to-let companies up and running in the UK passed through the 200,000 mark as the country emerged from the first lockdown, by 2021 this figure rose to a new total of 269,300. 61% of these companies have been set up since the withdrawal of mortgage interest relief which began in April 2017.

The average buy-to-let company has been operating for 9.2 years, a figure which has fallen amid the rising number of new incorporations over the last five years. At the other end of the scale, 7,900 or 3% of companies have been running for more than 50 years, while 440 have been going for more than a century.

50% of new buy-to-let mortgages in 2021 were taken out by a company rather than someone buying in their personal name, meaning we estimate that around half of all new landlord purchases last year used a company to hold their buy-to-let. 40% of these new purchases went into a company which was less than a year old, suggesting newer landlords still account for a sizable proportion of growth.

Buy-to-let companies currently hold a total of 583,000 mortgaged properties, accounting for around 29% of all existing buy-to-let mortgages nationally. This figure has increased from 26% over the last 12 months.

The bulk of new buy-to-let companies set up in 2021 were in London and the South East, with the two regions together accounting for 45% of all new incorporations. These two regions have long led the incorporation charge given higher rents mean the tax advantages from incorporation are generally larger. Only the North East, the cheapest region in the country, saw fewer (-6%) buy-to-let companies set up in 2021 than in 2020.

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Northern Ireland (36%) has seen the biggest annual increase in the number of new buy-to-let companies set up, albeit from a low base.

While the number of buy-to-let incorporations has continued to grow, around 25,100 have closed their doors since the onset of the pandemic. 15,200 companies closed in 2021 which equates to around 6% of all buy-to-let companies up and running today. The average company closed down after 5.8 years, a figure which has fallen steadily in recent years as the number of incorporations has increased.

RENTAL GROWTH

Despite rental growth across Great Britain peaking over the summer months, an annual growth figure of 7.2% recorded in December 2021 means that rents were rising at around twice the rate recorded in December 2020. This compares to a peak of 8.7% in July 2021 and 7.9% in November 2021.

For the sixth month running, rents grew faster in the South West (12.8%) than in any other region. This growth means that average rents have now surpassed £1,000 per month in all four Southern regions of Great Britain: London before our records began in 2012, the South East in July 2016, East of England in December 2020 and the South West in December 2021.

Rental growth continued to strengthen in Greater London on the back of a recovery in Inner London. Inner London rents rose 8.6% over the last 12 months, the fastest rate since March 2016. This leaves the average rent here just 2.0% below where it was on the eve of the pandemic in January 2020.

Rental growth (3.7%) in Outer London has remained considerably more stable, returning to its pre-pandemic trajectory.

Source: Property Wire

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15% of landlords unaware of upcoming EPC changes

An estimated 15% of landlords said they have no knowledge of upcoming legislative changes to Energy Performance Certificates (EPCs), according to research from Shawbrook Bank.

From 2025, all newly rented properties will be required to have an EPC rating of C or above.

Currently, properties only require an EPC rating of E or above. Existing tenancies will have until 2028 to comply with the new rule changes.

A quarter (25%) of landlords surveyed said they had little to no knowledge of the forthcoming changes to the required EPC rating.

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With a large proportion (36%) of landlords with properties built pre-1940, Shawbrook’s analysis showed that a significant number of landlords will be required to make changes.

On a regional level, four in 10 landlords said that their properties in London were built prior to 1940, with a similar picture in the South West, Scotland and Wales.

Victorian properties make up 13% of private rental housing stock nationally, according to landlords.

Emma Cox, sales director at Shawbrook Bank, said: “The true extent of what this legislation could mean for the market has not yet been properly realised.

“Inaction could see a considerable percentage of the private rental sector declared unrentable or unsellable within a matter of years if landlords don’t take important steps now.

“Making changes to improve a property’s energy efficiency rating will help to improve the overall energy efficiency of the UK housing stock and to assist the government in meeting the ambitious net-carbon zero targets set out earlier this year.

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“But on a more direct level, making the improvements ahead of the impending 2025 deadline will ensure that properties remain commercially viable for the short and long term for landlords.

“Putting off making necessary changes could leave landlords exposed to extended void periods when their property can’t be rented out while works are being completed.

“Mortgage lenders, and key players in the market, have a big role to play in supporting landlords by helping them to understand the new legislation, the potential impact this could cause and how to take action, if required.

“Our research indicates a clear gap in landlord’s understanding of how the changes will impact them and their current yields.

“As well as these risks to landlords,, renters may also be put in an even worse position as they compete for a smaller number of properties that are rated C or above after the 2025 deadline.”

By Jake Carter

Source: Mortgage Introducer

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UK Finance: BTL purchase lending up 83% in 2021

UK Finance has predicted that buy-to-let (BTL) purchase activity will have increased to £18bn this year, up 83% on 2020.

UK Finance said the main driver of lending in 2021 was for house purchases at £200bn, up 53% on 2020; however, homeowner remortgaging activity was slightly down on last year at £62bn.

The predictions outlined that total house purchase transactions, including cash purchases, will reach 1.5 million in 2021, some 47% higher than 2020, and the highest number since before the Global Financial Crisis.

UK Finance estimated that gross lending overall would peak at £316bn, up 31% on 2020, then moderate to £281bn in 2022, before increasing again to £313bn in 2023.

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Looking ahead, UK Finance said that while the 2022 and 2023 gross lending figures will be reductions on the 2021 peak, they will be higher than the 2020 and 2019 figures, representing a return to more stable levels of activity.

James Tatch, principal, data and research at UK Finance, said: “2021 has been a bumper year for mortgage lending amid the stamp duty holiday and homeworkers moving from cities.

“The outlook for the housing and mortgage markets over the next two years is for a return to more stable, balanced picture following the upheavals of the last two years.

“While risks remain, both to new lending and ongoing affordability, the market looks to be emerging from the pandemic in a better place than previously anticipated, supported by a much-improved wider economic outlook.”

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Elise Coole added: “It has been an enormously busy year for the buy-to-let market, with pent-up demand from the pandemic and the end of the stamp duty causing a spike in activity.

“UK Finance has predicted a significant slowing of purchase volumes in the buy-to-let sector next year, but this is not surprising given how pumped up the market was by artificial stimuli this year.

“What’s important though, is that UK Finance expects another strong year of lending next year, both for purchase and remortgage, with remortgage activity being driven by the tax changes introduced by George Osborne when he was Chancellor.”

By Jake Carter

Source: Mortgage Introducer

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Britain’s best cities for buy-to-let investors revealed: Bristol takes top spot to knock Manchester off its perch

Bristol has been named the UK’s best city to be a buy-to-let landlord, thanks to its healthy house price growth and high proportion of renters.

Following closely behind Bristol, the prestigious university cities of Oxford and Cambridge were ranked second and third.

This was according to specialist buy-to-let mortgage lender Aldermore’s Buy-to-Let City Tracker, which ranks 50 cities based on how desirable they are for buy-to-let investors.

Manchester, which was awarded top spot last year, dropped to fourth due to having more vacant properties than last year, and a fall in the proportion of residents renting.

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Factors taken into account in Aldermore’s rankings include the average rent, the rental yield, house price growth over the past decade, the number of vacant properties relative to the total housing stock, and the percentage of the city population that rents.

Bristol has ‘huge investment potential’
One of Bristol’s main selling points for landlords is that it has returned solid house price growth over the past decade.

The average house price in the city has risen from £212,261 in 2010 to £348,543 today, according to Land Registry figures.

This means property prices have grown by 5.1 per cent each year. The only city to perform better in this respect was Luton.

Bristol was also one of the best cities for rental demand, with only 0.6 per cent of its housing stock left vacant on average over the past year. This was equalled only by Oxford.

More than a quarter of Bristol’s residents are estimated to be privately renting, creating a large pool of tenants for buy-to-let landlords to pick from.

Alexandra Tan, regional lettings manager at Andrews Property Group said: ‘The lettings market in Bristol is extremely buoyant at the moment with high demand across the board and this hasn’t gone unnoticed by buy to let investors, who see huge investment potential in the city.

‘Bristol is appealing to young professionals and families who are relocating from cities such as London. Many are looking to rent short-term while they find somewhere to buy.

‘There is also a huge student population of around 50,000 in the city, which means there is strong demand for quality student properties.’

However, buy-to-let landlords considering Bristol, they may find that the yields on offer are not quite as enticing as other cities.

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With the average property price in Bristol at £348,543 and average annual rents at £16,037, the typical yield an investor can expect on their purchase is 4.6 per cent.

The rental yield is the percentage return a landlord can expect to make back on the purchase price each year.

For example, a 5 per cent yield on a £200,000 property would amount to £10,000 per year in rental income.

Southern landlords see value of investments soar
Based on Aldermore’s analysis, buy-to-let opportunities in southern cities appear to be more lucrative than elsewhere in the UK.

Over the past 10 years, those who invested in buy-to-let in southern cities have reaped the rewards of considerable house price growth.

For example, second-placed Oxford and third-placed Cambridge have given property investors an annual return of 5 and 4.9 per cent respectively, through house price growth alone.

Both cities also benefit from a very low levels of vacancies (0.6 and 0.7 per cent respectively) combined with a high proportion of residents who rent privately – 29 per cent in both cases.

London, which has continued to fall down Aldermore’s league table in recent years, still comes in sixth, thanks to the relatively high proportion of private renters in the capital.

The typical cost of a London property has risen from £414,000 in 2010 to £659,000, according to the latest Land Registry figures.

As many as 29 per cent of the city’s population rent privately – second only to Bournemouth where 35 per cent of people rent.

However, high house prices mean the yields on offer in most of the top ten cities are comparatively low.

Oxford, Cambridge, London and Brighton offer yields ranging between 3 and 3.6 per cent, which are lower than any other city on the tracker.

For those seeking higher rental yields, Glasgow and Hull are offering average rental yields of 9.4 and 8.9 per cent respectively.

Hull currently has an average house price of £127,344, which means it is also the most affordable city of all the 50 locations included on the tracker.

However, properties with higher yields are often seen as higher risk, as they are commonly in locations where landlords might find it harder to re-let or sell the homes if they needed to.

Other high yielding cities include Stoke, offering a 8.3 per cent yield and Aberdeen offering a 8.1 per cent yield; as well as Dundee and Sunderland offering 7.8 and 7.7 per cent yields respectively.

Capital gains on the rise in Northern cities
Furthermore, there is some indication that property prices in certain cities that have not enjoyed house price growth over the past decade might now be starting to pick up.

Liverpool, which finds itself 33rd on Aldermore’s index, has seen 10.6 per cent house price growth in the past year alone, according to Zoopla’s latest Hometrack report.

Those investing in Liverpool can achieve 7.3 per cent yields, according to Aldermore’s analysis.

However, the city has a relatively high long-term vacancy rate of 2.2 per cent, suggesting that investors need to ensure they do their research before buying.

Manchester, which has average yields of 5.9 per cent, saw house prices increase by 8.7 per cent over the past 12 months, according to Zoopla.

And Sheffield and Belfast, which came 46th and 43rd on Aldermore’s tracker, have seen house prices grow by 7.9 and 7.7 per cent respectively.

Hamptons’ latest four year forecast predicts the the greatest house price growth to take place in Scotland and the North East between 2021 and 2024.

It predicts property prices will rise by 20 per cent in Scotland and 21.5 per cent in the North East during the four-year period.

On the other hand, it only predicts London to experience 7 per cent house price growth in that time, whilst the South West and the East of England are set to fare little better with only 11 per cent growth anticipated.

However, choosing a buy-to-let investment is not as simple as looking at where it is located on the map.

There is always an element of guess-work when it comes to predicting future house prices, but looking out for planned improvements in cities will help investors to make a more informed decisions.

For example, it could be that the transport network is being improved, major building projects are taking place, or that new retailers are popping up in the town centre.

Michael Cook, national lettings managing director at property company Leaders Romans Group said: ‘Buy-to-let investors should focus on the cities benefiting from major infrastructure and transport programmes as well as any regeneration schemes.

‘Manchester is a good example, having benefitted from the trans-Pennine rail scheme in recent years.

‘Towns and cities fringing the Crossrail route will also prove good options, as the programme is estimated to contribute £42billion to the UK economy.

‘This will dramatically improve transport links in London and the South East, as well as driving house-building, supporting wider regeneration and creating jobs and business opportunities.’

Source: This is Money

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Acute Demand Pushes Rental Growth To New High

‘Acute rental demand’ over the three months to September 2021 has pushed UK rental growth to its highest level since 2008, Zoopla has reported.

And the upward pressure is set to continue, said the property portal. Demand is continuing to outstrip supply which is running at 43 per cent below the five-year average .

On average UK rents are now 4.6 per cent higher than a year ago – 6 per cent if London is excluded from the calculation – and 3 per cent up in the last quarter alone.

Even London rents are showing signs of recovery. After 15 months of consecutive falls, London’s rents increased by 4.7 per cent between June and September.

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‘The market is being shaped by an ongoing supply and demand imbalance, with demand continuing to outstrip supply’, said Zoopla.

‘The imbalance has been compounded by both long-term structural issues such as landlord divestment following the 3 per cent stamp duty levy introduced in 2016, and more the immediate post-lockdown demand, which collectively have eroded available supply’.

Rental growth is also explained in part by tenant demand moving up the price bands. This reflects the continuing search for space, which has not only characterised the sales market, but the rental market, too, said Zoopla.

The regions registering the highest levels of rental growth are among those that are the most affordable when compared to the UK average, and as such, there has been more headroom for rents to increase.

‘Rental growth is close to, or at, a 10-year high across most UK regions – except for in London and Scotland. Rents are up most in the South West, 9 per cent year on year, followed by Wales, 7.7 per cent, and the East Midlands, (6.9 per cent .

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‘In many of the UK’s largest cities, annual rental growth is running well ahead of the five-year average rate of growth. Bristol leads with 8.4 per cent growth in the year to September, followed by Nottingham at 8.3 per cent, and Glasgow at 7.2 per cent.

Rental demand in the central zones of Manchester, Edinburgh and Leeds has at least doubled over Q3 compared to Q1, and in Birmingham demand has increased by 60% – buoyed by the return of office workers and students, and the lure of city life.

‘The swing back of demand into city centres, including London, has underpinned another rise in rents in the third quarter, especially as the supply of rental property remains tight’, said Zoopla head of research Gráinne Gilmore.

‘Households looking for the flexibility of rental accommodation, especially students and city workers, are back in the market after consecutive lockdowns affected demand levels in major cities. Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location’.

Source: Landlord Knowledge

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Stamp Duty holiday stimulated Buy-to-Let purchases in the South

London, the South East and the South West led the jump in buy-to-let house purchases during the Stamp Duty holiday, analysis by Paragon Bank has revealed.

Comparing the period when landlords received the full 3% Stamp Duty discount – July 2020 to June 2021 – with the last comparative period not impacted by Covid – July 2018 to June 2019 – showed the number of buy-to-let purchases increased by 52% in London.

Paragon’s analysis of industry data showed the South East recorded a 49% increase in purchase completions, whilst the South West saw buy-to-let purchases rise by 41%.

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At the other end of the scale, the West Midlands saw the smallest increase, with transactions rising by 12%, whilst Wales and Scotland, which had different housing stimulus measures, rose by 8% and 1% respectively.

The regions that saw the greatest increases were those where the Stamp Duty saving was greatest based on average house prices. Landlords could save up to £15,000 in Stamp Duty costs during the holiday period.

However, they were also the regions that saw the greatest falls in house purchases after the Stamp Duty 3% surcharge for buy-to-let and second homes was introduced in April 2016. Between 2015 – the last year before the surcharge was introduced – and 2019, buy-to-let purchases fell 55% in London and 51% in the South East, whilst the South West decreased 41%. Despite the Stamp Duty holiday, transactions during the July 2020 to June 2021 12-month period were still 30% below 2015 levels in London and 29% lower in the South East.

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RegionStamp Duty holiday % increase vs July 18 – June 19Proportion of BTL purchase (July 20 – June 21)July 20 – June 21 % decrease vs 2015
Greater London52%15.5%-30%
South East49%20%-29%
South West41%8.4%-17%
North East29%4.7%6%
East Anglia28%3.8%-15%
East Midlands24%8.2%-4%
North West17%11.9%-7%
Yorkshire & Humber17%8%8%
West Midlands12%9.6%2%
Wales8%3.7%-5%
Scotland1%6%-13%

Paragon Bank Managing Director of Mortgages Richard Rowntree said: “The impact of the Stamp Duty saving on regions where house prices are generally higher is clear to see, with transactions in London and the South increasing by approximately half. There were also strong increases in the South West, North East and East Anglia.

“Despite this, tenant demand still outweighs supply in large swathes of the country, which is leading to record levels of rental inflation, plus transactions still remain significantly below the level experienced before the Stamp Duty surcharge was introduced in 2016. As the Government pursues its Levelling Up agenda, it needs all facets of the housing market to be working effectively, including a sufficiently sized private rented sector to facilitate labour market mobility and provide good quality homes for those who cannot or don’t want to own a home”

Source: Property118

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Rental costs rocket as demand outstrips supply, finds Zoopla

Annual rental growth reached the highest level for 13 years at 4.6% in the third quarter, according to the latest index from Zoopla.

Across the UK, rents hit an average of £968 in the three months to the end of September as demand from tenants outstripped the supply of available properties.

When London is excluded, average rental growth across the rest of the UK was 6%, with demand doubling in central Leeds, Manchester and Edinburgh and London from Q1 to Q3.

Rental growth at or near a 10-year high across most UK regions – except for in London and Scotland.

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London’s rents have returned to positive territory after falling for 15 consecutive months, with an increase of 4.7% between June and September as offices reopened and workers returned to the city.

However, London rents are still 5% lower than they were at the start of the pandemic.

Zoopla forecasts that the undersupply of rental properties across the country and the strength of the employment market will support rental growth into 2022.

It expects that across the UK, but excluding London, rents will rise by 4.5% by the end of next year.

Meanwhile, London rental growth is expected to pick up to 3.5%, with rents ultimately exceeding pre-pandemic levels.

Zoopla says that the shortage of rental properties has been compounded by both long-term structural issues such as landlords leaving the market following tax changes as well as short-term issues with a surge in demand when lockdown ended.

Rental growth is also explained in part by tenant demand moving up the price bands in the so-called “race for space”, which has not been restricted to the sales market.

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UK monthly rents now account for 37% of an average income for a single tenant occupant.

However, even with strong rental growth, affordability remains in line with the five-year average.

The regions registering the highest levels of rental growth are among those that are the most affordable when compared to the UK average, which has allowed more headroom for increases.

The South West saw the biggest annual increases at 9%, followed by Wales at 7.7% and the East Midlands at 6.9%.

In many of the UK’s largest cities, annual rental growth is running well ahead of the five-year average rate of growth.

Bristol leads with 8.4% growth, followed by Nottingham at 8.3%, and Glasgow at 7.2%.

Zoopla head of research Gráinne Gilmore says: “The swing back of demand into city centres, including London, has underpinned another rise in rents in Q3, especially as the supply of rental property remains tight.

“Households looking for the flexibility of rental accomodation, especially students and city workers, are back in the market after consecutive lockdowns affected demand levels in major cities.

“Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location.”

By Leah Milner

Source: Mortgage Finance Gazette

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Paragon: Landlord confidence at five-year high

The proportion of landlord respondents optimistic about different aspects of letting is at the highest level for five years, according to Paragon Bank.

As part of research carried out on behalf of Paragon Bank by BVA BDRC, landlords were asked to rate their expectations for rental yields, their own lettings business, capital gains, the private rental sector, and the UK financial market.

The proportion who deemed the outlook for these measures to be either ‘good’ or ‘very good’ exceeded levels seen in Q3 2016, the survey taken just before the Brexit vote, with investor optimism consistently rising following the record low levels seen in Q1 2020.

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The survey also highlighted a link between optimism and portfolio size, as 56% of landlords with 11 or more properties felt ‘good’ or ‘very good’, but this fell to 46% amongst those with between one and 10 properties.

A positive outlook was noted among 63% of those who had recently purchased a property, compared to 48% of all respondents.

More than three-quarters (78%) of landlords who planned to expand their lettings business in the next year were optimistic, whereas confidence was seen in a lower proportion (26%) among those looking to divest.

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Richard Rowntree said: “Understandably, landlord confidence fell sharply in the first quarter of 2020, as the extent of the pandemic became clear.

“It is fantastic to see optimism bounce back and rise in the time since; it is an indication of the strength of the sector.

“Landlords see the sector’s issues and opportunities on a daily basis so measuring their outlook can provide useful insight for the industry and, as we see here, investor confidence can have a real impact on behaviour.”

By Jake Carter

Source: Mortgage Introducer

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Annual rental income growth greater in outer city areas

While an inner city rental property still has a higher monthly rental income, rental homes in outer city areas have seen stronger growth over the past year, according to Sequre Property Investment.

On average across London, Manchester and Birmingham, the monthly cost of renting within an inner city area is £1,152 versus £908 per month in the outer city market, a difference of 27% or £244 per month.

London was home to the biggest difference, with rents across the inner city rental market coming in 37% higher on average, with a 26% difference in Manchester and a 9% difference in Birmingham.

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However, on average across all three cities, annual rental growth across outer city areas has remained largely flat, while across inner city rental areas it has fallen by 4.4% in the last 12 months.

Manchester has seen the strongest performance, with inner city rental values remaining largely unchanged in the last year, while across the city’s outer rental market values have climbed by 3.7%.

In Birmingham, outer city rental values are up 2.2% versus a marginal 0.3% uplift across the inner city.

And in London, there has been a 1.1% increase in rental values across outer city areas and a 7.8% drop across the capital’s inner city areas.

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Daniel Jackson, sales director at Sequre Property Investment, said: “It’s clear inner city rental markets are still struggling due to the decline in demand caused by the pandemic, despite a gradual return to normality from a social standpoint and with regard to the workplace.

“This is particularly evident across the London market, where rental values have plummeted across inner city areas, while they’ve also struggled in outer city areas.

“The good news is that elsewhere, outer city rental values are on the up, with both Manchester and Birmingham seeing very healthy levels of growth.

“This suggests that tenants are now starting to make their return and this is a trend that should soon reach our city centres and help boost values across inner city rental markets.”

By Jake Carter

Source: Mortgage Introducer

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