Northern England is expected to become a property hotspot for buy to let landlords over the next year according to new research.
A survey conducted at Legal & General Mortgage Club’s recent buy to let forum asked brokers about the future of the buy to let market following the recent tax relief and stamp duty changes.
80 per cent of the brokers surveyed were found to predict that landlords were most likely to expand their buy to let portfolios in Northern England rather than the previously popular London and the south east.
Northern England properties were found to provide the best buy to let yields in the UK during the second half of 2016, and most brokers expected that trend to continue.
Many brokers have confirmed a boom in interest from buy to let investors in Northern England, as they look to exit a london market where yields have fallen.
69 per cent of the brokers quized in the Legal & General Mortgage Club forum also expected buy to let landlords to streamline their portfolios, selling investment properties with lower yields with a view to following better opportunities.
45 per cent of the brokers expected those ‘better opportunities’ to include investment in University towns and student accommodation to improve investmdent yields.
Director of Legal & General Mortgage Club, Jeremy Duncombe, said: ‘Over the past 12 months, the buy to let market has experienced a myriad of legislative changes.
‘Today’s research from Legal & General Mortgage Club’s inaugural buy to let forum shows one of the impacts of these developments, with developers looking north for value. Landlords are resourceful, and this demonstrates the resilience of the market, despite many changes.
‘The last year has been a particularly challenging year for buy to let. The stamp duty hike, coupled with the changes to tax and the Prudential Regulation Authority legislation affecting landlords with four or more properties, has undoubtedly impacted the purchase market in particular.
‘However, it is reassuring to see that confidence in this essential tenure remains as landlords respond and adapt to this new landscape.’