Will Buy-To-Let Bust in 2017?

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@nationalandlord @PorticoProp #postbrexit

Transcript of Will Buy-To-Let Bust in 2017?

Page 1: Will Buy-To-Let Bust in 2017?

@nationalandlord @PorticoProp#postbrexit

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WHAT FACTORS MAY IMPACT RENTAL PRICES IN 2017?

Less landlords/properties to the market

AirBnB decreasing long term stockAverage tenancy lengths increasing

SUPPLY: SET TO DECREASE DEMAND: SET TO INCREASE

Supply / demand imbalance likely to increase rental prices and

weaker transaction prices may result in higher rental yields

London population still growingLondon job market still strong

Fewer tenants buying

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WHAT DOES THIS MEAN FOR YIELDS – LOOKING BACKIn 2014 there were already parts of central London with yields below 4% but there were still many areas with 5-6+%

Yields %(Oct 14)

>6%

5 – 6%

4 – 5%

<4%

Source: Portico Internal Analysis

2014

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WHAT DOES THIS MEAN FOR YIELDS – LAST YEARBy 2015 we had 4 boroughs which were below 3% in terms of yield and a much higher number of boroughs below 4%

Yields %(Oct 15)

>6%

5 – 6%

4 – 5%

3 - 4%

Source: Portico Internal Analysis

2015

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<3%

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WHAT DOES THIS MEAN FOR YIELDS – THIS YEARIn 2016 we have 5 boroughs which were below 3% in terms of yield and almost all boroughs, with the exception of 3 (Haringey, Newham and Barking & Dagenham), at 3-4%

Yields %(Oct 15)

>6%

5 – 6%

4 – 5%

3 - 4%

Source: Portico Internal Analysis

2016

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<3%

But 2017 likely to revert the trend to give better

Yields

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RESOURCES FOR LANDLORDSEven more important to optimise your portfolio in the best way possible, and if you are investing further know by street where is best

YIELD MAP

INSTANTVALUATION

–Check how much a property is worth instantly

–Portico.com/valuation

portico.com

INVESTMENT PROPERTIES

–Find out which street is best –Live market data –Portico.com/yields

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–17 offices across London–The team are here today–Osbournes Solicitors & Capricorn Financial Advisers here today