Soaring rents in Plymouth are tempting landlords back to the housing market in 2022.
New UK figures show the number of buy-to-let mortgages taken out during the past year was the highest since 2016.
A total of 275,600 buy-to-let mortgages were issued in the 12 months leading up to February. This included 159,100 remortgages.
The stamp duty holiday also played a part, with 110,000 new buy-to-let mortgages issued during this period. This compares to just 75,800 in the 12 months up to February 2020.
Plymouth letting agents report significant rent rises
Letting agents in Plymouth have also reported “significant rent rises” which is positive news for the city’s investment landlords.
The average cost of a rental property in the South West has gone up 0.77% in the last month.
From £1,012.39 in March 2022, this figure rose to £1,020.22 in April.
This follows the national trend, where the average rent in England is now £1,012.27.
Richard Rabin, Director of Lettings, says: “We have seen significant rent rises here in the Plymouth area.
“Average one-bed flats that two years ago were renting for £550 or £575pcm, are now achieving £650 or £695pcm.
“This is all good, positive news for the investment landlord.”
Attractive property yields in Plymouth
Property yields continue to look attractive for landlords in Plymouth, with interest rates at rock bottom.
There is also a growing amount of institutional capital, thanks to the UK’s undersupplied rental market.
A reported £1.4 billion of deals were agreed in the build-to-rent sector during the last three months of 2021. This pushed year-end investment volumes to a record £4.3 billion.
Annual spend rose by 19% compared to 2020, the previous record year. Deal volumes also increased by nearly a third year-on-year.
Richard Rabin adds: “Yields in Plymouth have increased on average from 5.5% to 7% – on a £110,000 to £120,000 property.
“This is a great return on a landlord’s investment, and that does not factor in the capital growth.
“The same is being seen at the top end of the market. Here, four-bedroom detached properties are increasing from approximately £1,200 to £1,600pcm.
Tenants desperate for quality Plymouth properties
Demand from tenants for quality homes in Plymouth continues to increase.
Richard Rabin adds: “The main problem we have currently is that we don’t have enough stock for the tenants we want to try and help.
“It’s going to continue to be really busy throughout 2022, so now is a great time to become a landlord.
“If you are interested in becoming a landlord, or you would like any help or guidance with renting a property, just give us a call on 01752 201010.”
You can also contact us via our website here.
Our Lettings team won Gold – the highest level that can be achieved – at the Best Estate Agent Guide Awards 2022. Find out more here.
