Landlords confident for year ahead
Confidence among landlords remains at a record high, with research from Paragon Mortgages finding that 33% expect the value of their portfolios to increase in 2014 while over a fifth plan to buy more buy-to-let (BTL) property over the next few months.
In fact, 38% of those surveyed were feeling optimistic about the prospects of their portfolios and resulting performance, building on the second half of 2013 when landlords’ optimism was at the highest level ever recorded.
Meanwhile, a further survey has revealed that it isn’t just UK landlords that are feeling optimistic – over the last 12 months the number of foreign landlords renting out UK property has jumped by 6%, surpassing the 2 million mark, further indicating growing optimism in the UK BTL sector.
The figures come from a report released by chartered accountants UHY Hacker Young, which also found that the number of foreign landlords has risen by 39% over the last five years alone.
Property in London and the South East is particularly sought-after for BTL landlordswhile increased investment in new build properties has boosted the supply of quality homes available in the rental market, no doubt further boosting confidence in the sector.
While the number of overseas landlords could start to dwindle when the Government’s plans to charge capital gains tax on foreign investors’ properties come into force, 2014 is still looking to be a good year for the BTL sector as a whole.
Article courtesy of MoneyFacts