Landlords unphased by tax relief cuts

Sarah Davidson

July 27, 2015

Research from Barclays Mortgages also found that just 23% said they would even consider the idea of selling their buy-to-let property.

Regions that have seen a significant increase in buy-to-let properties purchased include Birmingham, which may be attributed to the planned HS2 train line to London, which is set to begin construction in 2017.

Greater London areas such as Slough, which attracts some of the UK’s largest businesses, are continuing to do well, as are popular university towns such as Bristol, Nottingham and Manchester.

Plymouth has seen one of the biggest jumps in buy-to-let properties purchased, shooting from 212th in the Barclays ranking last year, to 16th in 2015.

Barclays said its growing economy and £90m investment pledge from the government as part of their support for seaside towns may be the reason behind the growing surge in the rental market, as more businesses flock to the South West.

The survey of UK buy-to-let homeowners found three quarters choose to purchase their property in order to invest in their family’s future, including retirement and supplementing university fees.

Over 75% of buy-to-let properties owners own more than one property, with those in Bradford and Glasgow leading the way, averaging eight properties per person.

As a nation, buy-to-let owners prefer to be their own estate agents, with over 52% opting to manage their properties themselves.

Good structural conditions, strong transport links and capital growth prospects were stated as the main attractions for investors of buy-to-let. When it comes to inside the house, minimal renovation was stated as the most important attribute.

Andy Gray, Barclays managing director of mortgages, said: “It’s encouraging to see homeowners are still feeling confident about the rental market and view buy-to-let as a valuable way to support their finances.

“Whilst London still leads all things buy-to-let, areas like Plymouth and Peterborough show there are some great value hot spots outside the capital city that are worth investment as the economy grows.

“For those considering buy-to-let, we encourage you to speak to your mortgage advisor on what are the best options for your situation.”

Derram Attfield (42), a self-employed recruitment professional in London and Barclays Mortgages customer, said: “There’s no guarantee of a state pension being available when I retire and being self-employed I recognised the importance of having a good retirement plan in place.

“Becoming a buy-to-let landlord has helped me support my pension plans through the opportunity of growth in equity in the flat, plus a regular rental income.”

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