A new survey has revealed that the buy to let market in the UK is showing no signs of slowing down, with a growing number of landlords looking to grow their portfolio.
According to Simple Landlords Insurance the country's private rental sector is thriving, and of the 1,400 landlords questioned, 48% said they own more than two rental properties, while 11% said they had more than five properties in their portfolio.
When questioned why landlords were investing in buy to let property, 56% said they had made a conscious decision to buy investment property because of demand for it in their area. The survey also reveals that 78% of landlords are confident they can find a new tenant within four weeks should their property become unoccupied.
When asked about the investment opportunity a buy to let property brought, just 55% said that rental yields had been their motivation for such an investment.
Landlords in the UK are planning to increase their rents
The survey also reveals that 24% of landlords in the UK are planning to increase their rents in the coming year. However, the main reason for evicting tenants over the last two years for 65% of landlords was rent arrears.
The survey has also revealed that the area with the best performing buy to let sector is in south central England. More landlords there than the national average said they were looking to grow their portfolio in the next two years, with 36% hoping to expand compared with 33% nationally.
From their own data, Simple Landlords Insurance have revealed that the most popular destination for buy-to-let is Cardiff, which has risen nine places to fifth place. Hull, meanwhile, has risen a huge 14 places in just five years and now stands at 14th place, looking set to become the quickest developing location in the UK.
Free boilers offered to landlords
Meanwhile, landlords are being offered the opportunity of a free boiler to help them improve the energy saving standards of their rental property. The offer is being made in Dudley under their Winter Warmth Scheme and the council is now contacting thousands of landlords in the area. The offer also includes free loft and cavity wall insulation.
Landlords can also receive funding for a boiler: while the insulation offer is available to all householders, landlords who provide a home for tenants would need them to be on certain benefits to receive funding or a replacement boiler.
The council says that this is a great opportunity for landlords to save money on energy bills, but also warn that, by not keeping their properties up to standard, landlords can and will face prosecution.