Where are BTL landlords likely to buy in 2020?

AFS Team·5 March 2020·4 min read
Where are BTL landlords likely to buy in 2020?

Where are BTL landlords likely to buy in 2020?

A survey on where buy to let landlords are most likely to buy new investment properties in 2020 has been revealed.

Research from Paragon points to landlords in the Midlands as being the most likely to invest.

The survey questioned more than 800 landlords and found that 24% of those in the East Midlands are looking to buy over the next 12 months, with 22% of landlords in the West Midlands also looking to boost portfolio numbers.

Buy to let investors in the North East and Yorkshire and Humber have 19% of their landlords wanting to invest in BTL.

In central London, around 9% of landlords are looking to buy at least one property and in the South West, the figure is 8%.

Landlords wanting to buy a property

The national average of landlords wanting to buy a property is 14% and the average number being acquired will be three new properties.

The firm's managing director of mortgages, Richard Rowntree, said: "The proportion of landlords wanting to buy properties has been consistent over the last two years but we are seeing variations regionally and also a greater propensity among portfolio landlords for investing in property."

He added that portfolio landlords have taken up several strategies to meet the regulatory and tax changes in recent years and they are increasingly buying stock from those landlords who are leaving the market.

Portfolio landlords are also, he says, targeting higher yielding investment properties, including HMO's.

When asked how they were planning to finance their investment, 63% of landlords said they would use a BTL mortgage, while 17% will be releasing equity from their portfolio to provide funds. Another 18% said they will use previously invested money for purchasing property outright.

50/50 split among BTL investors steps closer

Meanwhile, the growing number of women entering the buy to let sector is seeing the gender split among landlords edging closer to 50/50.

A survey by ludlowthompson has found that 47% of landlords are now female and numbers have increased by 5% since 2016/17 to 1.2 million.

The estate agents say the shift highlights that property is a popular investment choice for women - it is seen as being a low risk move with better returns than other assets.

A spokesman for the firm said: "The BTL market has a reputation for providing long-term, stable returns and while some investors have been distracted by speculative investments, BTL is building increasing interest among investors who value long-term growth and income."