22% of landlords expect to buy in the North West

Precise Mortgages has revealed that the North West is expected to be the busiest region for landlords.

Its study (conducted by BDRC) found 22% of landlords plan to buy in the North West followed by the South East and Yorkshire & The Humber which 16% of landlords are targeting for new properties.

Regions reporting a higher proportion of buyers than sellers in the next 12 months included the East and West Midlands plus the South West and North East.

68% of buyers plan to fund their next purchase with a buy-to-let mortgage while just 18% will release equity from existing properties. Demand for mortgages is similar across all portfolio sizes although 23% of landlords with 11-plus properties will release equity.

Brokers continue to dominate the market – almost 73% of landlords used a mortgage broker or intermediary to arrange their last buy-to-let mortgage, while 19% went direct to a lender.

Landlords with six to 10 properties were the most likely to use brokers at 79% while 29% of landlords with one property dealt directly with a lender.

Alan Cleary, managing director of Precise Mortgages, said: “The increasing professionalisation of the buy-to-let market means landlords are becoming more focused and selective in where they buy properties and how they fund their purchases.

“Recent rate cuts across the buy-to-let market are highlighting the opportunities to increase portfolios and profitability as well as underlining the need for expert advice from brokers particularly among landlords with bigger portfolios.”

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