The property market, in many respects, is all about confidence. If people believe that house prices are going to go up, then they will invest. If there is doubt, then they might hold on to their money. So, it is great news that landlords in the east of England are the most positive about their future while also saying that tenant demand remains strong.
This is according to new research carried out by the BDRC on behalf of Paragon. It measured landlord confidence across a range of features and compared it against similar metrics over different periods. Although levels of confidence couldn’t quite measure up to historic highs, they were up following a down period after the introduction of new taxes for landlords in 2015. There was a further dip last year when tighter rules for buy to let mortgages came into place.
Over half of the landlords in the east of England surveyed said they felt upbeat about their prospects. Four out of five felt that demands for property in the rental sector was either stable or increasing. A similar figure was recorded in the Midlands. Landlords in London, however, were the least optimistic about their future.
John Heron, managing director of mortgages at Paragon, said: ‘After an unprecedented level of change, it’s encouraging to see landlord confidence stabilising this quarter. At a regional level, the East of England and the Midlands look well supported, with encouraging data on tenant demand, yield and capital gains while the London market adjusts its footing after many years of strong growth.’
Confidence in the market and good tenant demand make for a bright outlook here in the east of England and Norwich area. As long as people continue to invest, the market stays buoyant and in check. And even after periods where confidence has been dented by new legislation, it has appeared to bounce back pretty quickly, which can only be a good sign.
Although there are signs that things are slowing down in London, this has long been predicted. After years of exponential growth, a slowdown allowing other areas to catch up is a not necessarily a huge concern. With several other areas around the UK reporting positive news, it appears the doom-mongers may have been wrong after all. If you’d like to know more about local market conditions, get in touch with our team at Agile.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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