Buy to let boom is here to stay, say experts and data

In 2020 when the pandemic broke out, warnings were heeded that the buy-to-let market was heading towards disaster and there would be a ‘mass exodus’ of landlords.

A year on shows quite the opposite has happened. Data shows that in 2020, 131,900 properties were sold by landlords in the UK, marking the smallest landlord sell-off since 2013, when only 105,839 properties on the rental market were sold.

Research also shows that the average price a landlord sold a buy-to-let home for in England and Wales in 2020 was £82,450, equating to 42% more than what they paid for it, having owned the property for an average of 9.1 years.

In the same year, the average gross gain made by a landlords increased by 4% or £3,390 compared to 2019, marking the first annual rise in over five years.

Many experts in the property market believe that buy-to-let remains the UK’s favourite way to invest money.

Surveys like the one conducted by FJP Investment show landlords still have an appetite to increase their rental portfolios. The survey reveals that 44% of buy-to-let investors are planning to purchase one or more properties in 2021.

Speaking to Landlord Zone, Daniel Lee, Total Landlord Mortgages Principal, explained how investors remain confident about the buy-to-let market:

“From speaking to investors, it seems they are increasingly confident in buy to let as an investment over other options. Despite average property prices being higher than ever, according to the Office for National Statistics (ONS), we’re handling a record number of mortgage enquiries and there is no sign of any slowdown from investors.”

If you are thinking about investing in property to buy-to-let purposes or extending an existing portfolio, you might want to consider making your investment purchase at auction? Check out the great lots we’ve got listed in our forthcoming auction in London.