According to research by Mortgage Trust, landlords are remaining upbeat about the long-term letting outlook with more people looking to rent as a housing solution.
The proportion of tenants on short-term occupancies has increased, with immigrants and students seeking homes. The proportion of landlords’ tenants made up of students increased from 7 to 15 per cent since January, with the proportion of migrants increasing from 3 to 6 per cent over the same period.
John Heron, director of mortgages at Mortgage Trust, said: “The majority of small-scale investors have no plans to sell their properties, and instead they remain confident that they will be able to add significantly to their portfolios over the short and medium term.”
Letting to students is also proving to be financially viable, as investors in student towns can expect an average rental yield of 6.59 per cent – 1 per cent higher than the average rental yield in England, according to figures released by Landlord Mortgages.
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Michelle Moran, mortgage adviser at Plan Invest Group Limited, said: “BTL is popular at the moment as house prices are on the increase, first-timers can’t get on the ladder, so there is still a strong BTL market.”
