Helping landlord clients explore new investment locations

12/08/2020

Let’s play a word association game. If I said Liverpool, what’s the first thing you think of? If you’re a big Liverpool FC fan like me, you’ll undoubtedly think of Jurgen Klopp leading the club to its first league title in 30 years. If you’re not a football fan, I reckon you’d think of The Beatles, the River Mersey or maybe Cilla Black.

Perhaps one thing that doesn’t immediately spring to mind is buy-to-let. But did you know that Liverpool could be the ideal place for landlords who are looking to buy a new property to diversify their portfolios and maximise their rental yields?

According to credit expert Totally Money, Liverpool’s L1 postcode tops the buy-to-let yield table with a potential 10% return on investment. The city also has five other postcodes in the top 25, with yield returns ranging from 7.13% to 8.67%.

An ambitious regeneration programme and millions of pounds worth of investment in recent years has breathed new life into the city, while its large student population means there’s a high demand for quality rental accommodation.

In fact, according to the latest research by BVA BDRC, the Northern regions of the UK in general seem to be performing well in what’s a challenging buy-to-let market. Landlords operating in the North West are currently achieving the highest average rental yields at 6.5%, with landlords in the Yorkshire and Humber area achieving 6.3% and those in the North East achieving 6.2%. Landlords in the North West are also typically more upbeat, with more than half of landlords likely to report current demand for rental property as ‘very strong’ or ‘strong’.

The increasing professionalisation of the buy-to-let market means landlords are becoming more focussed and selective in where they buy properties and how they fund their purchases. And with yields consistently higher in the north of the country than they are in other areas, it’s no surprise that landlords are concentrating on the areas where they can get the most value.

Interestingly, BVA BDRC’s research also found that almost two thirds of landlords plan to use a broker to secure their next buy-to-let purchase, with fewer than one in five expecting to approach a lender directly. This means there’s a huge opportunity for brokers experienced at helping landlords find the right mortgage.

Here at Precise Mortgages we’re an intermediary-only lender and our buy to let mortgages offer landlords a variety of solutions, whether they’re a portfolio landlord, run their business as a limited company, are looking at HMOs, and even first-time buyer and first-time landlords. The range features LTV up to 75% and is available for purchases and remortgages. We’ll accept HMOs up to six bedrooms, while our sister company InterBay Commercial can consider properties with up to 20 bedrooms.

As landlords look at exploring new investment opportunities in different areas of the country, it’s vital lenders support them by offering them a choice of products and the flexibility to manage their portfolios in the way they want.

For intermediary use only
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