A noteworthy
number of British buy-to-let landlords plan to buy more properties over the next
year notwithstanding the frustrations, challenges and seismic changes in the private
rented sector. According to the
specialist buy-to-let lender ‘Aldermore’, their research shows around 41% of portfolio
buy-to-let landlords' objectives are to GROW their portfolio.
Talking to the local
landlords I deal with, most are feeling quite optimistic about the future of
the Oakham rental market and the prospect it presents because they still see
the Stamford and Rutland rental market as a decent investment opportunity.
With top of the
range bank and building society savings accounts only reaching 1.5% a year, the
rollercoaster ride of ‘crypto currency’ and the fluctuations of the stock market,
the simple fact is, with rental yields in Oakham far outstripping current
savings rates, the short term prospect of a minor drop in property prices isn’t
putting off local landlords.
The art to buying
an investment property is to buy the profit on the purchase price, not the
anticipation of the future sale price.
No matter what
the historical economy has thrown at us, with the global meltdown in 2008/9,
dotcom crash of 2000, ERM in 1992, the 3 day week, oil crisis and
hyperinflation in the 1970’s etc., the housing market has always bounced back
stronger in the long term. That’s the point - long term. Investing in buy-to-let is a long-term
strategy. Over the long term with the increasing demand for rental properties, predominantly
among Millennials as many cannot afford to get on the property ladder, and with
councils not building enough properties of any kind, many youngsters are having
to resort the private rental market for their accommodation needs.
There are 118
landlords that own just 1 buy-to-let (BTL) property in Oakham and 258 Oakham
landlords who are 'portfolio landlords'. Between
those 258 Oakham portfolio BTL landlords, they own a total of 541 Oakham BTL
properties.
Applying the
Aldermore figures means 106 landlords
have plans to expand their Oakham BTL portfolio in the coming year or so. However, the Aldermore Research also
showed that 8% of private landlords intended to reduce the number of properties
they own. Attributing their reasons to
continuing government intervention in the housing market (as many landlords
mentioned too many limitations and higher taxation), while some believed that
tenants are excessively protected to the detriment of the landlord.
I would say there
is no repudiating that the buy-to-let market has taken a bit of a beating, yet
there still remains an overall consciousness of optimism among the vast
majority of local buy-to-let landlords. Despite these latest changes, many
landlords still view buy-to-let as a good investment, as long as you buy right
and expand your portfolio taking into account the second rule of buy-to-let …
assess your position on the ‘buy-to-let seesaw’ of capital growth and yield.
If you want to
buy right and assess your own portfolio drop me a note. I don’t bite and the opinion I give, whether
you are landlord of mine or not as the case may be, is given freely, without
obligation or cost.
