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industry news
Show visitors expect 2015 to pay dividends
Renewed confidence and optimism
in the buy-to-let market will trigger
sustained and significant investment
in the sector by UK landlords in 2015.
That is the view of Bilal Ahmed, CEO of
Signature Private Finance, following
the recent Landlord & Letting Show
in Coventry, an event attended by
almost 1,300 people.
Independent research conducted at
the event by Signature found 76 per
cent of those in attendance planned
to increase their property portfolio in
2015. Interestingly, around 85 per cent
of those questioned revealed they had
not previously used short-term funding,
but most would now consider using it
to help grow their property portfolios
more quickly.
Despite constant discussion in the
media of potential interest rate rises
and the likely impact on the buy-to-let
market, landlords remain ambitious
and enthusiastic about capital growth
despite industry concern that the
housing market is slowing.
Ahmed commented: “Landlords are not
expecting dramatic or unaffordable rises
so, as our research reveals, the expectation
is the sector will continue to grow in 2015.
“Their willingness to further invest and
increase their portfolios highlights a
confidence among those already reaping
the benefits of buy-to-let.
“This is great news for the long-term
prosperity of the sector. Millions of
people now depend on the flexibility of
rental accommodation, a choice which
offers quality, yet affordable homes to
help them save for a deposit should they
wish to buy in the future.”
Of those landlords surveyed at the
show by Signature, 78 per cent said they
had previously bought properties in
urgent need of refurbishment. The size
of portfolios varied, with the majority, 58
per cent, owning one to three properties,
24 per cent of landlords owning four
to ten properties and 8 per cent with a
portfolio between 11 and 25.
Ahmed continued: “Despite the
potential for costs to rise, it seems lower
house prices, more tenants in the market,
rising rents and the increasing availability
of competitive mortgage deals have once
again tempted property investors.
"The Midlands offers particularly good
opportunities for landlords, with both
the West and East Midlands in the top
five regions for buy-to-let returns, due in
part no doubt to the range of amenities
and facilities. Locations with good road
and rail links are always high on the list of
desirables, making these type of places
so attractive for buy-to-let investors.”
Signature Landlord & Letting
Show key findings:
• 76 per cent of landlords plan to increase
their property portfolio in 2015
• 89 per cent purchase buy-to-let properties
• 15 per cent purchase properties using
short-term finance/bridging loans
• 32 per cent purchase using cash
• 46 per cent have bought property at
auction
• 85 per cent of landlords would now
consider short-term finance/bridging
loans to extend their portfolio
• 78 per cent have bought property in
need of refurbishment
• 58 per cent of landlords own 1 to 3
properties, 24 per cent 4 to 10, 8 per cent
11 to 25.
Deposit scheme hits £1 billion mark
The Deposit Protection Service (The
DPS), the UK’s largest tenancy deposit
protection company, announced
today that it is now protecting more
than £1 billion of tenants’ money.
The DPS is currently safeguarding
over 1.2 million deposits across England
and Wales, totalling just over £1 billion.
Julian Foster, Managing Director at
The DPS, said: “We’re very proud that so
many landlords and letting agents trust
us to protect their tenants’ money.
“It’s testament to the hard work of so
many of my colleagues that such a large
volume of money can be administered so
smoothly, transparently, fairly and securely.
“With the rental sector expanding
and evolving, The DPS will continue to
play a leading role within the industry,
focusing on rapid deposit repayment;
clear, regular communication with
landlords and tenants; and the provision
of the best support, whether online,
over the phone or in person at our
unique training events.”
Since its foundation in 2007, The DPS
has protected over 3.5 million deposits,
worth over £2.8 billion in total.
The DPS is the only scheme to offer
a choice between schemes that are
custodial – where it holds the money
during the duration of tenancies – and
insured – where landlords retain deposits.
Its custodial scheme is open to
all letting agents, landlords and
organisations, and there are no
12 Landlord & Buy-to-Let Issue 57 • March 2015
membership fees or qualifying criteria.
For its custodial scheme, The
DPS repays all deposits within two
calendar days on receipt of a jointly
authenticated repayment instruction.
It also offers an independent, free
Alternative Dispute Resolution service,
which aims to resolve any disputes
quickly and without the need for
court action.
The DPS is part of the Computershare
group, a global financial services
company with over 30 years’
financial administration experience.
Computershare also runs The DPS’s sister
organisations, The Letting Protection
Service Northern Ireland and The Letting
Protection Service Scotland.