The Government’s stamp duty holiday appears to be encouraging more landlords to expand their portfolio, figures reveal.
In findings from Simply Business, they say that 10% of landlords confess they are now planning to buy more properties to expand their portfolio before the stamp duty holiday ends at the end of March 2021.
Last year, just 3% of landlords said they were planning to do so.
The figures also reveal that 5% of landlords say they have no plans to sell any of their existing properties.
This growing confidence, says Simply Business, may also lead to a surge in investments away from cities and towards coastal towns and countryside homes.
Property investors are looking to buy
Their figures highlight that property investors are looking increasingly to buy outside of a city and figures from Rightmove highlight that property searches for rental properties in villages and small towns with a population of under 11,000 people, have more than doubled.
The chief executive of Simply Business, Alan Thomas, said: "Coronavirus has been transformational in renters’ attitudes to property and where landlords are, therefore, looking to make investments.
"The pandemic has led to more people spending more time in their home, both for leisure and work, and it's no surprise that tenants want larger properties with an outdoor space."
He added: "The UK’s buy to let market is in transition which is driven by tenants moving away from city centre properties."
Figures also reveal that tenants are looking to move to the countryside, The Deposit Protection Service (DPS) reveals.
Pandemic is leading to a change in tenant behaviour
They say that the ongoing pandemic is leading to a change in tenant behaviour and this is now reflecting that of homeowners with growing numbers of people having to work from home.
The DPS has published its latest rent index which shows growing demand for larger rural properties, with demand for urban flats and properties dropping in the third quarter of this year.
The managing director of the DPS, Matt Trevett, said: "Our index shows clearly that tenants are following homeowners and reconsidering city living and moving to the countryside.
"The prevalence of working from home seems to be causing renters to reassess their priorities in urban areas, including a desire for more outside and indoor space.”
He added that this increase in demand is pushing up rents for large and rural properties, while rents for flats and urban homes are dropping.
The managing director of Accommodation for Students, Simon Thompson, said: “While students will need accommodation close to their university campus, it does appear as if landlords are looking at their portfolio in a strategic way and investing in rural properties to maximise their yields.”
"Stamp Duty Tax Scrabble" by House Buy Fast is licensed under CC BY 2.0
