Growth is continuing in the buy-to-let sector, with some parts of the country performing particularly well, a new survey has revealed.
Early results from a UCB Home Loans survey show that there are hotspots in buy-to-let activity in Swansea, partly due to regeneration of the docks, and Colchester and Chelmsford, because of good connections with London and high levels of buy-top-let investment.
Other areas benefiting from a rise in investment were Rugby, Belfast, Bristol, and Peterborough, UCB Home Loans revealed.
However the report found investment in other areas varied considerably. In London, for example, the research found areas in the East were proving popular with prospects for the Olympics helping to boost interest. However, in some areas, high prices – and consequent low yields – were still dissuading landlords from making purchases.
“Investment activity in buy-to-let property has been particularly strong over recent months, reflecting the trend seen in the second half of last year, when lenders advanced a record 130,400 loans – 39% higher than in the first half of the year,” said Keith Astill, managing director at UCB Home Loans.
He added: “Overall, our research indicates that landlords are taking a long-term view of at least ten years when considering the return they will make from a property investment.”