Landlords are holding onto properties for longer

2 October 2020 | General

Buy-to-let investors are holding onto properties for a number of years, research from independent estate agents ludlowthompson found.

Some 29% of investment properties sold in 2018 had been owned for more than 15 years, up from 22% two years previously.

The agency said one in five investment properties sold in 2018 had been owned for less than five years. This figure has fallen from 2016, when a quarter of investment properties sold had been owned for less than five years.

Stephen Ludlow, chairman at ludlowthompson, said: “Greater numbers of buy-to-let investors are now in the market for the long term. Interest rates are predicted to stay ultra-low for some time and that helps keep mortgage costs low and rental yields extremely attractive versus other income producing investments.”

“This is good news for both the investors and their tenants. The government has been keen to encourage long term leases to provide certainty for renters. Investors who are planning on holding onto a property for some time provides this guarantee. Furthermore, they are more likely to invest more money into the property’s upkeep.”

“The residential property market has held up considerably better than the commercial property sector during these challenging last few months. As London gets up and running again, with workplaces, schools and universities re-opening, demand for rental properties in the capital is likely to continue growing. For long term investors, entering the residential property market could be an attractive option for individuals looking for a steady, stable form of income.”

London has been a particularly attractive hotspot for buy-to-let investors.

The agency said that, over the medium term, there is little chance that the systemically low supply of new build property in London will be able to meet demand.

This post has originally been featured in Property Wire.