106 Local Landlords Plan to Expand Their Buy-to-let Portfolios

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.