TERRACED properties are proving to be the most popular choice of property for landlords looking to expand their portfolios, according to landlord services firm, Landlord Assist.
The continuation of low interest rates and the gradual easing of lending restrictions by financial institutions have seen many buy-to-let investors return to the market place to expand their portfolios.
During the initial boom years, new city centre apartments proved to be the most popular investment for landlords as they were tempted by discounts for buying off plan and attracted by the prospect of renting to young professionals.
But the economic downturn hit these properties hard with values plummeting and rents failing to meet expectations.
Now, some three or four years after the property crash and with experienced landlords looking to capitalise on favourable market conditions once again, the buy-to-let sector is experiencing a definite shift in the types of property that landlords are looking to purchase.
With more people renting than ever before, landlords are now turning to terraced properties because of their attractive yields and lower purchase price.
Graham Kinnear, managing director at Landlord Assist said: “It’s not surprising that terraced properties are proving to be popular with landlords looking to expand their portfolios.
“Terraced properties are cheaper to buy than most others and generally tend to involve lower maintenance costs.
“As the property market continues its recovery, terraced property prices are likely to increase at a faster rate than any other type.
“Moreover, terraced properties help to attract the widest range of potential tenants, including students, young professionals, young couples and small families.”