The Leeds Buy to Let Property Market May Update

April has been an unprecedented month in the Leeds property market, with demand for properties continuing to outstrip the supply of available properties. Many of our clients have now seen 10%+ capital growth on their properties over the last year, with many of the newer properties increasing in value between agreement of sale and completion of purchase!

Leeds Buy to Let Sales Update

Savills, the global property services provider, commented that the number of sales agreed in April was at its highest point since before the Global Financial Crisis and around 55% above the 2017-2019 average.

The Stamp duty holiday as well as the return of 95% mortgages has led to an explosion in the number of people looking for a property, while would-be sellers have been reluctant to put their house on the market, given the COVID risk. This imbalance has seen asking prices for properties increase by about 10% over the last 2 months! With agents looking to capitalize on the buoyant market, it has continued to be difficult to agree sales without bidding over the odds.

However, we still anticipate that this demand bubble will subside over the next few months as the Stamp Duty holiday comes to an end and although our clients may have to wait slightly longer to get a Leeds BTL property under their belts, we believe it is better to hold fire than to compete in the current market.

Leeds Buy to Let Mortgage Update

In an interesting turn of events, while the demand for properties, and by association, mortgages is up, the mortgage interest rates seem to have come down, with lenders like PepperMoney (for limited company purchases) and VirginMoney (for purchases in personal name) working out very competitive. PepperMoney is offering a 5 year fix at 3.18% (limited company) and VirginMoney is offering its 2 year fix at 1.87% (personal name). This is excellent news for investors as lower mortgage interest rates increase rental returns.

Through April, we’ve managed to complete the purchase of 5 properties and sourced an additional 4, despite vendors’ attraction to rapidly increasing prices in the market.

Leeds Lettings Update

The need for many families to accommodate home working as well as just wanting a change in scenery has seen the demand for properties to let continue to increase. This has driven rents up far more than the seasonal average and our teams have even surprised themselves with some of the rents they have achieved for our clients.

3 Bed Expected: £650 Achieved: £795 +22.3%
3 Bed Expected: £725 Achieved: £825 +13.8%
2 Bed Expected: £625 Achieved: £675 + 8.0%
2 Bed Expected: £650 Achieved: £700 + 7.7%

Rising rents means higher rental yields, which has made it a great time to invest in the Leeds property market.

If you want to find out how we can help you get started on your property investment journey, contact our expert team today.

April has been an unprecedented month in the Leeds property market, with demand for properties continuing to outstrip the supply of available properties. Many of our clients have now seen 10%+ capital growth on their properties over the last year, with many of the newer properties increasing in value between agreement of sale and completion of purchase!

Leeds Buy to Let Sales Update

Savills, the global property services provider, commented that the number of sales agreed in April was at its highest point since before the Global Financial Crisis and around 55% above the 2017-2019 average.

The Stamp duty holiday as well as the return of 95% mortgages has led to an explosion in the number of people looking for a property, while would-be sellers have been reluctant to put their house on the market, given the COVID risk. This imbalance has seen asking prices for properties increase by about 10% over the last 2 months! With agents looking to capitalize on the buoyant market, it has continued to be difficult to agree sales without bidding over the odds.

However, we still anticipate that this demand bubble will subside over the next few months as the Stamp Duty holiday comes to an end and although our clients may have to wait slightly longer to get a Leeds BTL property under their belts, we believe it is better to hold fire than to compete in the current market.

Leeds Buy to Let Mortgage Update

In an interesting turn of events, while the demand for properties, and by association, mortgages is up, the mortgage interest rates seem to have come down, with lenders like PepperMoney (for limited company purchases) and VirginMoney (for purchases in personal name) working out very competitive. PepperMoney is offering a 5 year fix at 3.18% (limited company) and VirginMoney is offering its 2 year fix at 1.87% (personal name). This is excellent news for investors as lower mortgage interest rates increase rental returns.

Through April, we’ve managed to complete the purchase of 5 properties and sourced an additional 4, despite vendors’ attraction to rapidly increasing prices in the market.

Leeds Lettings Update

The need for many families to accommodate home working as well as just wanting a change in scenery has seen the demand for properties to let continue to increase. This has driven rents up far more than the seasonal average and our teams have even surprised themselves with some of the rents they have achieved for our clients.

3 Bed Expected: £650 Achieved: £795 +22.3%
3 Bed Expected: £725 Achieved: £825 +13.8%
2 Bed Expected: £625 Achieved: £675 + 8.0%
2 Bed Expected: £650 Achieved: £700 + 7.7%

Rising rents means higher rental yields, which has made it a great time to invest in the Leeds property market.

If you want to find out how we can help you get started on your property investment journey, contact our expert team today.