According to one source, there are around 5,600 empty flats in Leeds, and up to 40 per cent of new flats in Greater Manchester have been deliberately left empty, fuelling the belief that there is less demand for BTL than anticipated.
This has caused concern for new build developments as houses have been snapped up with greater rental yields while flats have had less demand.
Despite the empty properties, Paragon managing director, John Heron, believed that BTL was at a particularly strong point at the moment, especially in urban areas. He explained: “The rental flow has been boosted by the market crash and there is an upward turn for BTL. Landlords are benefiting from the general concern in the market and business-minded people are buying in their local areas.
“The figures refer to new builds. It’s true that new builds take longer to fill than established properties, and new builds are bought by speculators rather than landlords.”
David Austin, managing director of Property for Life, said: “Confidence in BTL is as strong as ever. Serious investors are buying before prices start to rise once more and capitalising on the increase in demand, achieving higher rental yields.”
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