Friday News #0123 – Banks To Become Landlords In Growing ‘Build-to-Rent’ Sector

Despite the pandemic, UK property has proven to be a resilient asset class and one that delivers profit regardless of the economic climate. A recent report also highlighted that profitability was strongest amongst landlords who had more than one rental investment property, highlighting the benefits of scaling your portfolio.

To learn more about investing in property in the UK in 2021 please do get in touch, we have several new and exciting opportunities launching that should feature in any diverse portfolio.

Here’s what we’ve seen in the news this week: 

UK house price rises accelerate, says Nationwide: UK house prices accelerated in August, the Nationwide has said, with values now 13% higher than before the pandemic. The building society said that annual house price growth sped up, to 11%, with the average home costing £248,857. Read more.

Banks To Become Landlords In Growing ‘build-to-rent’ Sector: Big companies pile into housing market that has proved resilient throughout the pandemic. Read more.

Four out of five landlords secure a profit from buy to let: Some 83 per cent of landlords have made a profit from their lettings activities in the second quarter of 2021 – a slight fall from earlier this year but a strong result according to Paragon Bank, which has undertaken the survey. Only four per cent of landlords record a loss “which we see is relatively stable when we look at profitability over a longer term” states the bank. Read more. 

Revealed – the rental market’s most lucrative sector: Research by Paragon Bank has revealed the sector that has out-performed the rest of the private rental investment landscape – student lettings. Since 2016 student properties have delivered a mean gross yield in England of 6.15 to 6.6 per cent, says Paragon – beating the overall rental market yield which has a window of 5.43 to 5.6 per cent. Read more.