"With 2021 announced as the “busiest year” for the housing market according to Zoopla, despite recent falls in transactions, it’s clear that the market has fully rebounded from the lows of the pandemic."
34% of landlords in the UK are planning to buy at least one property within the next 12 months. Despite the challenges of the global pandemic, house prices have continued to rise and remain at record levels, enticing landlords with the prospect of high rental yields. Of the 34% of landlords that plan to buy at least one property within the next 12 months, 14% said they aim to buy more properties than they had initially planned, showing trust in the market moving forwards.
Though property values are already at unprecedented levels, there is confidence that this growth will continue over the next year, with over two-thirds (67%) saying that they have confidence in the market over the next 12 months.
The confidence in the market has also shown that landlords are planning to extend their portfolios and buy in new areas. 13% of landlords plan to buy properties in a new location. Of these 36% are planning to buy in urban locations, while 30% are considering more rural locations. The north of England is proving particularly popular as 23% of those landlords intending to extend their portfolio, are planning to buy in northern regions.
The race for space also means that as well as different locations, landlords are considering alternative property types. 12% of landlords said they are now looking to buy a different type of property with semi-detached houses (34%) and terraced houses (31%) being the two most popular options. This is as tenants continue to favour properties with outside space attached. However, flats still remain a popular option (27%).
Emma Cox, sales director at Shawbrook Bank, commented: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has stood firm and house prices have continued to soar in price. This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months. Their buying activity and trends show that the market is likely to remain strong over the short term.
“Indeed, with 2021 announced as the “busiest year” for the housing market according to Zoopla, despite recent falls in transactions, it’s clear that the market has fully rebounded from the lows of the pandemic. As supply continues to be low, it’s unlikely that we’ll see house price growth slow significantly and as we move into January next year following the seasonal slowdown over Christmas, property investors will be seeking further opportunities to expand their portfolios.”