Which is the preferred property type for investors in 2016?

Which is the preferred property type for investors in 2016?

The latest data from Shawbrook, which examined the outlook for 2016 from property professionals and the expectations they have for their own investments, has revealed that HMOs are predicted to be the most popular property type for property investors this year.

According to the data, over a third (34%) of investors cite HMOs as their most preferred property type, an increase which has more than doubled from 16% in July 2015. The latest figures reveal that terraced housing is now the second most preferred property type for property investors (28%), followed by flats and maisonettes (22%).

It seems that property professionals are still working hard to understand the nuances of the HMO space, in particular with regard to valuation, planning and licensing, with over 50% of those surveyed finding these complex areas an ongoing challenge. Overall, over two fifths (42%) of those surveyed currently have an HMO property in their portfolio while a further 46% wish to enter or expand into the HMO market.

The high potential yields of HMOs are seen as an attractive proposition for property investors in the UK. Nearly three quarters (72%) of investors cited yield as the main attraction for investing in an HMO followed by the potential for capital growth (29%). Reduced risk of rental voids, compared to standard buy-to-let properties is also seen as an attraction for investing in HMOs in 2016 (18%).


Karen Bennett, Sales & Marketing Director of Commercial Mortgages at Shawbrook says: “As a lender, we’ve certainly seen a surge on interest in HMOs over the past year and our recent broker and client barometers confirm a big appetite in the market. This asset class has undergone significant change over the past decade with some very clear tenant and investor profiles emerging to bring some real quality to the sector.

Whilst the high yields make for an attractive investment, caution must be taken with regard to planning and licensing requirements, along with the challenges and pitfalls of the valuation process. Working with a professional broker is a sound strategy in order to take advantage of the opportunities on offer for borrowers looking to expand into this market, and their knowledge and experience bring a huge amount to the table when trying to achieve a good outcome for the borrower.”

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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