South West experiencing rebound in landlord activity



Landlords have been especially active in the South West of England now the effects of the pandemic look to be easing off, research by London rental platform Rentd has found.

The value of additional property purchases in the region are up by 22.4% following an 8.1% increase in transactions, suggesting that many investors are targeting higher value properties in the likes of Bristol, Cornwall and Devon.

Some 10% own an additional property, with the vast majority investing in a buy-to-let.

Bristol

Ahmed Gamal, founder and chief executive of Rentd, said: “Changes to stamp duty tax thresholds on second homes and buy-to-let properties have been just one government initiative designed to deter additional bricks and mortar investment.

“But despite their endeavours to dampen appetites, additional property purchase still accounted for around one in five of all residential transactions in the last year alone.

“Not only is the level of this investment increasing, but the value of these portfolios has also climbed considerably and it’s fair to say that the buy-to-let sector, in particular, is far from on its knees.”

For the UK as a whole there was a 3.2% increase in transaction volume, with these purchases carrying a market value of £70.9bn, a 13% increase on the previous year.

At 6.6%, the South East has seen the second largest increase in market activity concerning additional property investment, with the value of the market also up 17.6%.

The North East ranks third, where there have been 5.5% more additional properties purchased in the last year, although the East of England has seen the third largest uplift in the value of these transactions at 16.1%.

The East Midlands (-2%) and West Midlands (-2.2%) are the only two regions to see a decline in transaction volume where additional property purchases are concerned, although both have seen the market value of these transactions increase at 8.2% and 7.1% respectively.

While London sits mid-table where the annual change in market activity is concerned, the capital is the most valuable market for additional property investment by some margin, with £23.2bn invested in the last year.

At Borough level, Sutton has seen the biggest uplift in activity, with additional property investment increasing by a huge 33.3% year on year, while Merton (28.6%) and Hounslow (22.2%%) also saw some of the largest annual increases in investment.

However, it’s Hillingdon that has seen the biggest boost where market values are concerned, with the total value of additional property purchases made over the last year coming in 59.3% higher than the previous year.

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