Demand For BTL Forces Price Rise
The growing demand for buy-to-let (BTL) properties is causing prices to increase, as there is a low supply in the market.
Consequently, landlords will need to think hard about what to do over the next 12 months, with many making the most of the properties they already own and others looking to expand their portfolio, despite the rising costs, Buy Association predicted.
Shawbrook Bank recently revealed more than a third (34 per cent of landlords) intend to invest in at least one more asset in 2022.
Emma Cox, sales director at Shawbrook Bank, stated: “As supply continues to be low, it’s unlikely that we’ll see house price grow slow significantly and … investors will be seeking further opportunities to expand their portfolios.”
Using research from the Office for National Statistics and Ministry of Housing, it found 67 per cent of landlords have confidence in the property investment market this year.
In addition to this, 2022 marks five years since the Prudential Regulation Authority updated underwriting standards. As a result, many property investors locked themselves into long-term mortgage deals in 2017, meaning there will be lots of BTL loans coming to an end over the next 12 months, and landlords will be looking for attractive deals for their property investment.
Those who have had monetary problems in recent years will need to look for senior debt property finance to ensure they can continue re-payments on their assets.