A record-high number of landlords are now building buy-to-let portfolios using cash. According to research compiled by Countrywide Estate Agents, over the last 12 months, 65% of all homes bought by a landlord was paid for in cash, surpassing the previous high of 60% set in 2011, which is the highest percentage seen since Countrywide’s records begun in 2007. In 2007, 60% of buy-to-let purchases were paid for with a mortgage.
Landlords who purchased with cash acquired £21 billion worth of properties, which is £0.2bn more than in 2016 (a 32% increase on 2007 when they spent £15.9 billion).
In addition, the research also showed that the annual rate of rental growth slowed from 1.1% in September to 0.5% in October, though the average cost of a monthly rental income in Britain was £958 per month.
The leaders in rental growth were seen by the Midlands and Wales, where rents rose 2.2% and 2.6% over the past 1-month to £677 and £658 a month, respectively.
Johnny Morris, research director at Countrywide, said: “Landlords have increased their housing wealth considerably over the last 10 years. This means cash purchases are steadily becoming a bigger part of the market.
“But a landlord buying with cash will often have a mortgage either on their personal home or other properties in their portfolio. Rising prices have allowed landlords to take equity out of both their personal or other rental homes to expand their portfolios.
If you’re interested in purchasing a buy-to-let property in a cash deal, Certa Invest has the perfect deal for you. With properties available from £79,950 that features an 8% NET rental income that’s assured for 5-years by a well-established property management business, Galbraith Property Services, then get in touch with us today.
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The Rise offers a unique payment plan to investors looking to grow their buy-to-let portfolios, with a £5,000 reservation fee to secure your unit, a 50% on exchange of contracts, a 25% instalment payment and a final 25% on completion. In addition, Primesite Developments has extended their limited time offer of an additional 5% interest on deposits until the end of the month.