Best places to invest:

Property investors looking to invest in the buy-to-let market may wish to consider buying property in Luton and the surrounding area, which currently offers the best return on investment, new research shows.

According to the latest buy-to-let index, Luton in Bedfordshire is currently the most profitable area in the UK for buy-to-let landlords, with rental prices increasing by almost 9.5%, the largest increase in the country.

On an annual basis landlords in Luton generated just under a 5% yield, while home prices rose by 14% and experienced rental price growth of 9.58%.

Portfolios increasing:

Nearly half (45%) of landlords with two or more properties expect to increase the size of their portfolio in the next few years a recent survey has revealed.

More than half (58%) of homeowners would also like to become a buy-to-let landlord if they could afford it.

With the recent High Court ruling that Theresa May does not have the power to trigger Article 50 without parliament’s consent, the survey shows beyond doubt the UK buy-to-let market remains resistant to the economic uncertainty of Brexit.

Landlords prefer fixed deals:

Two thirds of (65%) re-mortgaging landlords are opting for fixed rate mortgages, research has revealed. Customers are typically looking for 2 or 3-year fixed rate deals and in some cases far longer periods. Two thirds (69%) of mortgage brokers said first-time buyer and re-mortgage clients are applying for shorter-term fixed deals while 27% said they are looking for longer-term fixed rates.

The ongoing mortgage rate war among leading lenders has seen the launch of a range of low rates especially in fixed term deals. Landlords with all the tax changes coming into effect next year see fixing a rate as an important part of their future planning.

Landlords – Time to review?