Most popular property type for landlords in 2016?
Did you know that Houses in Multiple Occupation (HMO) are predicted to be the most popular property type for landlords looking to invest in the buy-to-let industry this year?
Examining the outlook for property professionals in 2016, specialist lenders Shawbrook have revealed:
- Over a third (34%) of investors indicate HMOs most preferable.
- Terraced housing comes in second with 28%.
- Followed closely by flats and maisonettes with 22%.
Why are HMOs so popular this year?…
- Shawbrooks data shows that 72% (three quarters) of investors specified the high yield potential.
- 29% are drawn to the potential for capital growth,
- 18% of landlords are attracted by the reduced risk of rental voids, in comparison to standard buy-to-let properties.
Sales & Marketing Director of Commercial Mortgages at Shawbrook said: “As a lender, we’ve certainly seen a surge on interest in HMOs over the past year and our recent broker and client barometers confirm a big appetite in the market. This asset class has undergone significant change over the past decade with some very clear tenant and investor profiles emerging to bring some real quality to the sector.
Whilst the high yields make for an attractive investment, caution must be taken with regard to planning and licensing requirements, along with the challenges and pitfalls of the valuation process.”
Whilst 50% of these landlords surveyed are still finding HMO legislation a real challenge to get to grips with, it makes it even more important to find an efficient residential lettings service that can offer extensive marketing as well as market leading property management software plus insurances that will guarantee your rent should any circumstances change.
So if you’re looking to let your property this Easter Bank Holiday weekend and want your buy-to-let journey to run as smooth as possible, please have a look at our “Mad as a March Hare” Members Offer; advertise your property, obtain full servicing reference AND 6 months rent guarantee insurance all for just £100! Click here for full information.
- Are you planning on investing this year?
- What’s your buy to let property of choice, and why?
- Please join our live discussion by clicking here.
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Online Letting Price Comparison
