According to a new study, landlords seeking to expand their buy-to-let portfolios prefer to invest in areas where they have local knowledge and understanding of market trends.
The survey was carried out on more than 1,000 National Landlords Association (NLA) members to find out what were the top factors that landlords consider when getting ready to make a buy-to-let property purchase.
The report, which was carried out by Paragon Mortgages and BDRC Continental also revealed that the most common factor is a landlord’s own knowledge of the area, with 86% of respondents to the survey reporting this is at the top of their check-list. Meanwhile, 68% said strength of tenant demand in the chosen area was important, while 63% cited local rent levels as a key consideration.
Other important factors that the landlords consider include the prospect of capital growth, emphasised by 56% of landlords, as well as proximity to local transport connections (55%) and future development plans in the area (37%).
The report also revealed that 74% of landlords who are planning to make property purchases said they would be looking for one near their own home, with only ten per cent willing to buy further afield. Even then, they would only be prepared to look within a 100-mile radius from their local area.
Applegate Director, Amy Wray commented: “The research confirms what we already know, landlords want their properties to be as profitable as possible. The only way of doing this is to ensure they know the area well and know that the area can produce good rent levels.”
Source: http://www.rman.co.uk
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