Research from specialist lender Together reveals that a significant 76% of UK landlords are planning to refinance their property portfolios within the next year. This trend indicates a strong desire among landlords to secure funds for new investments, showcasing the resilience of the buy-to-let sector.
Why Are Landlords Choosing to Refinance?
With 36% of landlords stating they are “very likely” to refinance, and an additional 40% “somewhat likely,” the motivation appears to stem from the need to access capital for further investments. This trend is particularly notable as landlords look to diversify or expand their portfolios amid changing market conditions.
How Has the Market Shifted?
Since 2020, there has been a noticeable shift in the geographical distribution of buy-to-let lending. The North West has seen an increase of 3.3 percentage points in Together’s lending, while Scotland and Yorkshire and the Humber have also experienced growth. In contrast, Greater London and the South East have seen a decline, dropping from 23.6% to 20% of Together’s buy-to-let lending. This shift suggests a changing market in investment hotspots across the UK.
What This Means for Landlords
The increasing inclination to refinance indicates a robust sentiment among landlords regarding future investments. For those looking to expand their portfolios, this could be an opportune time to explore current mortgage rates and assess refinancing options. As the market evolves, landlords should remain vigilant about regional trends and adjust their strategies accordingly.
Frequently asked questions
What factors are driving landlords to refinance?
Landlords are primarily motivated by the need for capital to invest in new properties or improve existing ones, reflecting confidence in the buy-to-let sector.
How has buy-to-let lending changed in recent years?
There has been a geographic shift, with increased lending in the North West and Scotland, while Greater London and the South East have seen declines in their share of lending.