According to a new report from Simply Business, some one in 10 landlords plan to purchase properties and build their portfolio, compared to just 3% at the end of 2019.
The business insurance firm believes the new figures suggest landlords are keen to take advantage of the Chancellor’s stamp duty holiday introduced in July, despite the uncertainly of the original Covid-19 lockdown and the announcement of yet another one to begin next week.
Alan Thomas, UK chief executive officer at Simply Business, the coronavirus pandemic and subsequent lockdown has increased landlords desire to buy properties, but the focus on location may have ‘shifted’.
“The pandemic has resulted in people spending more time at home – both for work and leisure, while many of the benefits of city living have been impacted,” he explained. It’s no surprise to see that renters are valuing larger properties with outdoor space.”
“There appears to be a shift in terms of what is considered a desirable property by tenants, and residential landlords – crucial to both the economy and the local communities where they provide housing – along with the market in general, are reacting to this.”
“What is clear though, is that the UK buy-to-let market is going through somewhat of a transition, driven by a move away from the previous demand for city centre properties,”
The up-turn comes as good news after Zoopla figures revealed in August showed that tenant demand was 33% higher than it was before the first national lockdown in March – and 25% higher than it was during the same period in 2019.