Member Article

Increasing Tenant Demand Offers Bright Future For Buy To Let Landlords Claims PWR

Following recent reports that show that show the threat of rising mortgage interest rates, a Nottinghamshire based property consultancy says the future is bright for buy to let landlords.

PWR Lettings, with offices in Nottingham and Mansfield, says that despite the threat of mortgage interest rates increasing, tenant demand is larger than ever and landlords shouldn’t be afraid to increase their property portfolios.

The report comes from a survey by BM Solutions and the research revealed that 42% of buy to let landlords saw strong tenant demand in the past year. More than a quarter of the landlords in the survey are planning to invest in more rental property.

Simon Perkins, a partner at PWR Lettings, said: “Despite the fact that mortgage interest rates are increasing the future is optimistic for landlords as many are planning on expanding their portfolios due to increasing tenant demand. The more properties a landlord has in their portfolio the larger the gross income will be, PWR is confident that any new properties will be leased as demand is that high.”

A deep analysis of the buy to let market across the country found that landlords with portfolios of four or less rental homes paid an average £10,335 a year on buy to let mortgage repayments in the year. The average buy to let portfolio is 6.5 rental homes worth £1,031,000. This average portfolio generates £48,000 a year in gross rents with an average of £20,950 going on mortgage repayments.

The report shows that on average, landlords are paying approximately 40-50% of their rental income on but to let mortgages.

Mr Perkins, added: “The report shows us that the increase in interest rates shouldn’t deter landlords or potential landlords from investing in new properties as demand is that high for buy to let properties. Landlords should be confident that there properties will be leased.”

This was posted in Bdaily's Members' News section by Poppy-PR .