Broker Optimism In BTL Market

If you are a landlord in North London, Ariston Property is here to assist you. We know these are challenging times, but there is demand in the rental market. If you need assistance in reaching tenants, or you would like guidance on how best to manage your rental property right now, please get in touch.

If you are a landlord in North London, Ariston Property is here to assist you. We know these are challenging times, but there is demand in the rental market. If you need assistance in reaching tenants, or you would like guidance on how best to manage your rental property right now, please get in touch.

We know the North London letting market very well, and can advise you on local issues. We also keep up to date with the national rental market, ensuring you make an informed decision at all times. Also, we stay in touch with the latest research, which makes you know exactly what is happening in the UK rental market.

There is cause for hope in the UK rental market

If you are on the lookout for optimism in the rental market, you should view the latest data provided by Paragon Bank as being worthy of your consideration. With a prominent level of demand for rental property across the country, it appears as though brokers think there will be more business for them in the year which lies ahead.

Paragon Bank commissioned a study of UK mortgage brokers, which revealed the following responses:

• 41% of respondents expect BTL business to increase in the next year

• 28% of respondents say they expect BLT mortgage demand to remain stable

Richard Rowntree is the Managing Director of Mortgages at Paragon Bank and he said; “Despite the buffeting that coronavirus has caused to the mortgage market, and housing sector more broadly, there is clearly still strong and stable demand for buy-to-let via intermediaries, which is reflected in the results of this survey.”

Richard continued by saying; “We have seen a solid rebound in buy-to-let business since the housing market reopened in mid-May and landlords have been unlocking capital to invest and grow their portfolios further. We expect to see increased demand for rented property underpinning growth in the coming months as people delay house purchase or cannot obtain a mortgage with the removal of higher loan to value products in the residential market.”

Richard also said; “Coronavirus has had a clear and damaging impact on the economy and the UK as a whole, but the long-term fundamentals underpinning demand for buy-to-let remain unchanged. The UK has a growing population with increasing numbers of households and the private rented sector will provide a good quality home for many of them.”

The UK rental market has increased

In the past decade, according to Government figures, the UK rental market has increased by 1.7m households. There has also been an increase in the amount of people who live alone. In 2018, this figure stood at over eight million people. Research indicates this group is more likely to live in rented accommodation.

Another area which has increased growth in recent years is the number of people in Higher Education. With the majority of graduates residing in rental accommodation, this also places greater pressure on the rental market, while providing opportunities for landlords.

We know these are challenging times, but if you have any questions about the local property market, please feel free to contact us. At Ariston Property, we aim to support the local community as best we can, and we look forward to assisting you in any way.