Portfolio landlords are eyeing expansion not exit – UTB

Portfolio landlords are eyeing expansion not exit – UTB

0:03 AM, 19th December 2024, About 3 hours ago

Text Size

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.

Specialist BTL mortgages

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.”

Private rented sector isn’t as buoyant

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).


Share This Article


Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More