Btl Confidence Remains High Despite Market Challenges

AFS Team·27 February 2019·4 min read
Btl Confidence Remains High Despite Market Challenges

Btl Confidence Remains High Despite Market Challenges

Investors remain confident in the buy to let sector and there's little sign of a market slowdown, says one online agency.

In an analysis from yieldit, the firm says that the number of new listings and sales agreed during January saw significant numbers help to underline the strength of the BTL sector.

They say there were 191% more sales agreed in January than there were in June last year.

Also, there is a similar trend for new listings with a 146% increase over the same period.

They say that the figures highlight that, despite some Brexit uncertainty among investors in the BTL sector, the levels of trade are up on last summer.

The figures also highlight that October was the busiest month in 2018, particularly for sales of residential and student buy to let property.

The busiest month for new listings was November when nearly 200% more homes were made available than in December.

The firm's head of sales, Ryan Hughes, said: "It's interesting that many investors remained active over the festive season and lots of landlords chose to list properties before the Christmas break. Many then agreed on sales in January as investors looked to expand portfolios or undertake a new business.

"This indicates that for those investors wanting to sell, November could be the prime time for listing despite there being more competition."

Brexit fears do not scare property investors

Meanwhile, it's been revealed that fears over Brexit have done little to dampen the enthusiasm of investors.

Property developer SevenCapital undertook a global survey of high net worth individuals (HNWIs) and found that 85% of them are investing currently in UK property despite Brexit.

In addition, of those investors, property is the second most popular investment behind stocks and shares.

When UK investors were questioned, 30% said they were investing or are looking at UK property investment opportunities with 23% saying that Brexit is a catalyst for them to invest.

In addition, 55% believe that the UK's property market will be 'good' or 'very strong' over the next 18 months, with 64% saying so for the next three to five years.

A director at the firm, Andy Foote, said: "The figures show that people recognise there are bigger factors to consider than Brexit when looking at the overall UK property market trends."

He added that should the property market take a dip after the UK leaves the EU, then seasoned investors will appreciate this is likely to be a catalyst for a swing back.