A Third of Landlords Plan to Expand Their Lettings Portfolio in 2022
According to Nationwide, 34% of landlords are looking to expand their lettings portfolios in 2022, as strong rental market conditions are encouraging optimism within the sector.
Buy-to-let remains the investment choice for many, with rents rising by 9.9% in the last year, their fastest rate on record, according to Nationwide data and market analysis. * So, it’s no wonder that many landlords are looking to widen their horizons this year.
What is happening in the current market?
The market has shown strong signs of recovery from the COVID-19 pandemic, with demand levels skyrocketing, further pushing rental prices up.
With limited properties on the market, competition has been intense, increasing by 30%. ** This means that the lettings market is currently on fire, and tenants have been quick to snap up properties in just 17 days, according to Rightmove Property Data. **
In order to cope with the increase in market activity, many landlords are on a recruitment hunt for properties.
Many had predicted that the housing market boom would end abruptly following the stamp duty holiday deadline, but this has not happened, and the UK rental market is likely to continue to grow in 2022.
What’s in Store for 2022’s Rental Market?
A recent study has found that 67%*** of landlords are confident that rental values will continue to increase this year, according to Property Industry Eye, which explains why so many are looking to take advantage of the white-hot rental market and expand their portfolio.
The rental market has shown resilience, despite the challenges posed by the pandemic, which has produced appealing opportunities for investors and developers, increasing their confidence in the housing market.
If you’re looking to expand your lettings portfolio this year, here are our top tips:
1. Do Your Homework
First and foremost, take some time to evaluate your current circumstances and how things are going. Determine the financial viability of buying a new home. A mortgage lender will be able to assist you with your finances and give you the necessary data. Once you have done this, some time spent researching the area will allow you to keep an eye out for the property hotspots that are about to surge in popularity.
2. Treat it Like a Business
It’s important to consider what makes the most business sense for you. Managing one property may not take up a lot of your time, but once you start to expand, it will start to take up more of your time and energy. If you’re serious about expansion, our fully managed service allows you to sit back and enjoy the benefits of being a landlord.
We can simply collect your rent for you each month or provide a complete day-to-day management service for your portfolio.
3. Buddy Up
If you’re looking to rapidly expand your lettings empire fast is to partner with another person. This could be an investor who can assist you in raising the funds needed to expand your portfolio. Alternatively, it might be someone who can assist you with maintaining your properties, such as a tradesman who can assist with renovations and repairs.
The majority of landlords have an online presence, so it is important to market your property in the right way.
This method is one of the cheaper ways to attract tenants, as many tenants begin their search for a new home by visiting websites. As expert local agents we can help make your expanding experience quick and easy.
We can assist you in reaching a large audience with your properties, filtering out the right people to view it and enquire about it.
*According to Nationwide data and market analysis
** According to Rightmove Property Data
** According to Property Industry Eye