More landlords who are looking to increase their portfolios are turning to terraced properties as their preferred choice. Tenant referencing firm Landlord Assist say that the low interest rates and the gradual easing of lending restrictions is seeing many buy-to-let investors returning to the marketplace.
During the initial boom years it was always new city centre apartments that landlords wanted for investment. At the time there were a huge number of young professionals wanting to move into these apartments and landlords were able to cash in on their popularity. However, the economic downturn hit these properties hard and values went down quickly and dramatically. The buy-to-let sector is now experiencing a definite shift in the types of property that landlords are looking to purchase.
Graham Kinnear, Managing Director at Landlord Assist, says: “It’s not surprising that terraced properties are proving to be popular with landlords looking to expand their portfolios. Terraced properties are cheaper to buy and have lower landlord insurance premiums than most others, plus they generally tend to involve lower maintenance costs. As the property market continues its recovery, terraced property prices are likely to increase at a faster rate than other types. Moreover, terraced properties help to attract the widest range of potential tenants, including students, young professionals, young couples and small families.”
The shortage of mortgage finance options along with the difficult time many first time buyers are having trying to raise the large deposits required to buy a property means that private landlords are now turning to terraced properties. A terraced house is still seen by many as the traditional starter home for first time buyers. But as many are being forced to rent demand is at an all time high for a terraced house in the private rented sector.