‘The Changing Face of Buy-to-Let’
Last month saw the release of Shawbrook Bank’s research report ‘The Changing Face of Buy-to-Let’ which takes a detailed look at the sector over the last 18 months.
The headline figure emerged showing the value of the Private rental Sector (PRS) has grown to £1.4trn and the research team consulted landlords, tenants and commercial finance brokers to understand what has driven such growth as well as what the future looks like.
Highlights from the report include:
Market Overview
- The Covid-19 pandemic and subsequent government reaction has dramatically re-shaped the market
- The Stamp Duty Holiday has turbo-charged the property market after the first national lockdown paused transactions
- The value of the PRS continues to increase, driven by rising house prices as the Stamp Duty Holiday fuels demand but supply remains low
- The PRS has contracted over the last year by 2.6%, making up 17% of overall housing stock, but the outlook points to growth
Landlords
- Almost half (46%) of landlords reduced monthly rent payments for their tenants because of the pandemic
- More than a third of landlords plan to buy property in the next year, with two thirds confident about the market. The North of England sees rental yields
rise, with more landlords planning to buy there
Tenants
- Average rent across the UK is £919 per month, with London remaining the most expensive at £1,754 per month
- Rents have increased annually by 1.6%
- More than half of renters said they would be prepared to pay more money if the landlord undertook a renovation of the property
Lenders
- Despite the impact of March 2020, mortgage lending is back on an upwards trajectory according to UK Finance
- Re-mortgaging levels expected to grow by 4% in 2021 as the possibility of rising interest rates prompts more to fix this year
At Sterling, we are proud to work with a panel of Lenders who are constantly working to improve their offering through researching the market and developing products that meet the demands of Landlords throughout the Country. As a result, we have access to innovative products that can support most property opportunities, from refurbishment works to add value and income potential to the refinancing of existing property to release capital for further portfolio growth.
Follow the link below to read the full report
The Changing Face of Buy-to-Let Report
If you would like to discuss your next property opportunity, speak to Nic or Sarah.
