Change in approach for buy-to-let market
By Rob Freeman | 27th October 2020
One in 10 landlords plan to purchase properties according to a new report - compared to just three per cent at the end of last year.
Research by insurers Simply Business said 82 per cent of landlords said they had no plans to buy at the end of last year, with only three per cent looking to add more than one property.
But with the introduction of the Stamp Duty holiday in July, 10 per cent are looking to purchase multiple property and just five per cent said that intended to sell.
Lockdown may have also pushed up demand in greener towns and villages with figures from property website Rightmove revealing searches have doubled for homes in small towns and villages.
Simply Business UK chief executive Alan Thomas said: "The coronavirus outbreak and consequent lockdowns have been transformational in UK renters' attitudes towards property, and where landlords are looking to make their next investment.
"The pandemic has resulted in people spending more time at home - both for work and leisure, while many of the benefits of city living have been impacted. It's no surprise to see that renters are valuing larger properties with outdoor space."
He continued: "There appears to be a shift in terms of what is considered a desirable property by tenants, and residential landlords - crucial to both the economy and the local communities where they provide housing - along with the market in general, are reacting to this.
"What is clear though, is that the UK buy-to-let market is going through somewhat of a transition, driven by a move away from the previous demand for city centre properties."
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