Buy to Let Latest Research
28 October 2022
Buy to Let Latest Findings
The past couple of months have brought some uncertainty to the property market and this is reflected in the latest Quarter 3 findings. Hopefully there are now some signs of things calming down a little, but in the meantime please find below some interesting snapshots
- A typical landlord in quarter 3 of 2022 has 8 properties and an average rental yield of 5.8%
- We are seeing an increasing disparity between the intention to buy or sell properties. In the last quarter, landlords are saying that they are more than twice as likely to sell property, rather than buy property in the next 12 months.
The Picture in Percentages
- 12% of landlords plan to buy a property in the next 12 months
- 28% of landlords plan to sell property in the next 12 months
- 71% of landlords plan to use a BTL mortgage to fund their next property purchase
- 57% of landlords are intending to purchase their next property within a Limited Company
- 35% of BTL borrowers intend to remortgage within the next 12 months
- 59% of landlords have at least 1 BTL mortgage
- 5.8% is the typical rental yield achieved by landlords
Landlord Optimism
Optimism in the short term has dropped to it's lowest level since the pandemic, with just 27% feeling positive.
Tenant Demand - Landlords continue to report high demand, with 65% saying it has risen in the last 3 months and 39% who say that demand has risen significantly.
Rental Yields
Year on Year, landlords are feeling less positive about Rental Yields. This time last year, rental yield confidence was running at 67%, compared to just 37% now.
Source: BVA BDRC Landlord Panel Research Q3 2022
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