by Daniel Jones
The new year looks set to be a positive time for landlords, with many ready to invest in new properties to add to their property portfolio.
A report by The Daily Telegraph has summed up some of the reasons why landlords are feeling increasingly positive about 2014 as an opportunity for expansion.
It quoted one property commentator as suggesting that the housing market is now "unrecognisable from 12 months ago", with prices growing in every part of the UK through 2013 and mortgage lending and transaction volumes also on the up.
What's more, these factors have combined to spell good news for landlords, as rental yields have gone through the roof. The newspaper explained that it's little wonder that two out of every three landlords are now planning to add new homes in 2014.
The one downside is that they will now have to pay more for these properties, with Nationwide's latest data showing that the average cost of a home in the UK is now £174,566 - up by five per cent in comparison with a year ago.
But this will be balanced by the fact that rental values are also on the rise, with the Countrywide monthly lettings index showing that the average income for landlords from their properties was 4.2 per cent up in the year to November.
Every area of the UK with the exception of the south-west reported an increase in rental charges over the 12 months in question. In particular, Scotland, London, the north-east and the east of England all showed evidence of strong hikes in rents.
Looking ahead to 2014, landlords are expecting to borrow more in order to fund their aspirations of expansion. More properties could soon be snapped up by owners with the intention of renting them out for a healthy return.
David Whittaker, of specialist landlord broker firm Mortgages for Business, said: "The intention of landlords to expand further demonstrates that demand for rental property shows little sign of waning."
Published on: December 20, 2013