A third of property professionals and landlords in the UK are looking to expand their portfolios this year despite a growing number of challenges, a survey reveals.
The bridging finance firm MTF says that 33% of landlords in the buy to let sector are looking to build their portfolio, while 50% said they are planning no changes during 2018.
Also, none of those landlords questioned said they were looking to reduce their portfolio size.
Of those who are looking to expand, many are looking to buy properties in the south-east of England and just a few of them are looking to buy in London.
Considering that 40% of respondents said that conditions in 2018 for property investors and landlords will not improve is, says MTF, ‘encouraging’.
The biggest obstacle when purchasing an investment property
When questioned about the biggest challenges ahead, 43% say the additional stamp duty surcharge is the biggest obstacle when purchasing an investment property.
That was followed by economic uncertainty and then by the country's new mortgage affordability rules.
Indeed, 15% of landlords say that accessing funding is their biggest challenge and 5% say the reduction of tax relief is their biggest challenge.
The director of MTF, Tomer Aboody, said: “While there is uncertainty, particularly over Britain's Brexit negotiations, the country's property investors remain resilient.”
Demand surges for London’s super prime lettings
Meanwhile, a big surge in the number of super prime tenancies being agreed in London last year has been recorded from figures revealed by real estate firm Knight Frank.
They say that 137 properties have been rented out costing at least £5,000 per week, which is a 34% increase on 2016’s figure.
The firm’s head of super prime lettings, Tom Smith, said: “The momentum is still gathering pace and demand is resilient because of higher rates of stamp duty and uncertainty over the prospects for price growth in the property sales market.”
Home rental becoming a more accepted form of tenure
Their findings also highlights that the deals being agreed are for a longer term basis with home rental becoming a more accepted form of tenure in the super prime market.
Knight Frank's figures also reveal that British and American tenants account for a fifth each of the super prime lettings, followed by Russian and French tenants and then the Chinese.
The most popular properties are six and seven bedroom homes in Primrose Hill and Notting Hill.
However, one property in Holland Park, which would cost £27m to buy and has six bedrooms, can be rented for £18,000 per week.
