Buy to-to-let landlords across the Midlands are most likely to acquire new property over the next 12 months, new research show.
A survey of almost 800 landlords conducted by BVA BDRC, on behalf of Paragon, found that almost a quarter – 24% – of landlords in the East Midlands plan to purchase property in the next 12 months, with 22% of West Midlands landlords also looking to add to their portfolio.
Other regions that showed high demand for property from buy-to-let investors included the North East and Yorkshire & Humber, with 19% of landlords in both regions looking to purchase.
Landlords in the South West (8%) and central London (9%) were the least likely to purchase property over the period.
Overall, 14% of landlords plan to purchase property, with the average landlord acquiring three new properties.
More than half – 52% – of those looking to buy property are targeting terraced housing, followed by semi-detached property (32%) and flats (26%).
A quarter of landlords also intend to buy a HMO during the year, reflecting the growing popularity of this property type, particularly amongst professional, portfolio landlords.
|% of landlords planning to increase portfolio in next 12 months|
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|Yorkshire and Humber||19|
Those with larger portfolios expressed a greater desire to buy property, with the research showing that 8% of landlords with one property planning to purchase during the year, rising to 20% for those with 20 or more.
Meanwhile, 12% of landlords with between two-three properties said they will buy, whilst the proportion of landlords with between four-five (15%), six-ten (14%) and 11-19 (14%) properties looking to purchase was broadly balanced.
Richard Rowntree, Paragon’s managing director of mortgages, said: “The proportion of landlords looking to purchase new property has been largely consistent over the past two years, but we are seeing regional variations and also a greater propensity for portfolio landlords to invest in property.
“Portfolio landlords have adopted a number of strategies to adapt to the tax and regulatory changes of recent years and we’re seeing trends such as these landlords buying stock from smaller-scale participants as they exit the market, or targeting higher yielding properties, such as HMOs.”
The researched showed that nearly two thirds (63%) of landlords plan to fund their next purchase with a buy-to-let mortgage, whilst 17% will release equity from existing properties to generate purchase funds. Meanwhile, 18% said they would purchase property outright using previously invested funds.
Purplebricks banked more than £18m in fees for thousands of homes it did not sell last year according to this morning’s Daily Telegraph.
It says the agency withdrew 21,380 listings in 2019 as market jitters forced many buyers and sellers to stay put.
The paper cites housing market data firm TwentyCi as the source of the figures.
Purplebricks is quoted in the article saying: “We are very confident our customers understand our upfront fee model and know it gives them a much higher chance of selling, for a much lower cost.”
The agency is also quoted as suggesting that it had saved its successful customers over £150m in fees they would otherwise have paid to traditional agents
An estate agent who swindled a 69 year old woman out of £5,000 has escaped jail – and has been ordered to repay the sum to the pensioner.
Claire Ainsworth’s UK Online agency was instructed by elderly owner Jennifer Scott to sell her house; Ainsworth brokered a sale to a local builder but told the vendor that the purchaser was unwilling to pay over £80,000.
In reality, the builder had said the highest price he would pay was £85,000.
Local media in Burnley report that prosecutor Stephen Parker told a court case: “She told Ms Scott that [the builder] Mr Walker wasn’t prepared to go any higher than £80,000 and Ms Scott reluctantly agreed to sell the property for that price.
However she told Mr Walker that the bottom price was £85,000, but that £80,000 would go through the books and £5,000 was to be paid in cash. Mr Walker paid that £5,000 in cash to the defendant believing that it was going to be given to Ms Scott.”
In reality the vendor knew nothing of the £5,000 until she was talking with the buyer, later.
The matter was reported to the police and now Ainsworth, from Oswaldtwistle – who denied a charge of fraud by false representation – was convicted in her absence when she failed to turn up on the day of the trial.
She had failed in a bid to have the case re-opened.
Defending, Christopher Hudson said his client was a woman of previous good character who was an “intrinsically decent and talented young woman” who bought her own first house at 20 and set up her own agency at 30.
She added: “This was a mean offence and the impact on your victim has been considerable. It isn’t just the money for her. She trusted you. You betrayed that trust.”
Ainsworth was ordered to pay the vendor £5,000 compensation within six months and complete 200 hours’ unpaid work.