Landlords are optimistic about 2025 as yields rise – Fleet

Landlords are optimistic about 2025 as yields rise – Fleet

0:04 AM, 9th January 2025, About 15 hours ago 2

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Landlords in England and Wales have a positive outlook for the private rented sector, one index reveals.

The rental barometer published by Fleet Mortgages points to rising rental yields with the average yield reaching 7.4% in the fourth quarter of 2024 as a big reason why landlords should be looking forwards.

This represents a 0.6% increase year-on-year, and a 0.2% rise compared to the previous quarter.

Positivity around the buy to let market

Fleet’s chief commercial officer, Steve Cox, said: “There is certainly a greater degree of positivity around the buy to let market now than at this time last year, even with the Budget decision to increase stamp duty surcharges for landlord purchasers.

“Our rental barometer reflects that optimism over the last quarter of 2024, with average rental yields – on the whole – continuing to improve, albeit at a slightly slower rate, but also in terms of Fleet’s figures for average monthly rents, average rates, average loan sizes, rental cover and application numbers for property purchases.”

He added: “Many landlords were waiting for the Budget before making decisions, but even with the stamp duty increase, at least they now have certainty about the future, can plan accordingly, and as mentioned, the financial position is positive which will allow more landlords to act and to add to portfolios where appropriate.”

Investors buying additional properties

News of growing landlord optimism comes despite a government decision to increase stamp duty surcharges for investors buying additional properties.

It helps that BTL mortgage rates have continued to fall over the past year.

Fleet reports that its average two-year fixed-rate product has dropped from 5.02% to 4.71% in Q4 2024.

There was also a similar drop for its five-year fixed-rate product.

The lender says this trend will continue throughout 2025, further improving affordability for landlords.

Witnessing a rise in activity

The index also highlights that the PRS is witnessing a rise in activity from both existing landlords and newcomers.

Fleet says it has seen an increase in applications from landlords with multiple properties, along with a rise in first-time landlord applications.

The lender says it anticipates a strong year for buy to let lending this year from both established and new landlords.

Demand will be driven by a combination of favourable market conditions and competitive mortgage products. it adds.

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dismayed landlord

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12:44 PM, 9th January 2025, About 2 hours ago

Are we as landlords optimistic. ?
Reading the reports on here I find that an amazing comment to make!
But then also where is the proof that we are all exiting faster than a bullet from a gun?
Perhaps everyone is right if you never have to prove anything but just make statements.
I am running for PM in 4 years time.
I have all the qualifications.
NONE!! Just make it up as you go! Simples.

DPT

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12:48 PM, 9th January 2025, About 2 hours ago

Evidence from the latest NRLA survey suggests the opposite of this report.

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