Regions that have seen a significant increase in buy-to-let properties purchased include Birmingham, which may be attributed to the planned HS2 train line to London, which is set to begin construction in 2017. Greater London areas such as Slough, which attracts some of the UK’s largest businesses, are continuing to do well, as are popular university towns such as Bristol, Nottingham and Manchester.
Plymouth has seen one of the biggest jumps in buy-to-let properties purchased, shooting from 212th in the Barclays ranking last year, to 16th in 2015. Its growing economy and £90 million investment pledge from the Government as part of their support for seaside towns may be the reason behind the growing surge in the rental market, as more businesses flock to the South West.
A survey of UK buy-to-let homeowners found three quarters choose to purchase their property in order to invest in their family’s future, including retirement and supplementing university fees.
Despite planned tax relief cuts to buy-to-let properties announced recently in the Budget, only one in ten (9 per cent) are planning to sell their buy-to-let property and under a quarter (23 per cent) would consider the idea.
Over 75 per cent of buy-to-let properties owners own more than one property, with those in Bradford and Glasgow leading the way, averaging a huge eight properties per person. As a nation, buy-to-let owners prefer to be their own estate agents, with over half (52 per cent) opting to manage their properties themselves.
Whilst the traditional lived-in house is still the most popular property to purchase, council and ex-councils flats are also increasing in favour, with over half (52 per cent) of all London buy-to-let owners purchasing this kind of property.
Good structural conditions, strong transport links and capital growth prospects were stated as the main attractions for investors of buy-to-let. When it comes to inside the house, minimal renovation was stated as the most important attribute. Whilst money is at the forefront of most property owners’ minds when purchasing a home, trust-worthy and reliable tenants came a close third as priorities for UK buy-to-let owners.
Andy Gray, Barclays Managing Director of Mortgages, said:
“It’s encouraging to see home owners are still feeling confident about the rental market and view buy-to-let as a valuable way to support their finances.
“Whilst London still leads all things buy-to-let, areas like Plymouth and Peterborough show there are some great value hot spots outside the capital city that are worth investment as the economy grows."
