One-bedroom flats and student accommodation are top of the list for landlords seeking capital gains in the next 12 months, a survey has claimed,
A poll by short-term lender Amicus Property found a quarter of UK landlords see one-bed flats as the most attractive for capital gains, while 24% sought student accommodation.
One in five landlords believe two-bedroom flats will offer the best opportunities for capital gains while 21% suggested it would be three-bedroom flats. Terrace houses were the fifth most popular option with 19%. Maisonettes were the least popular choice with only 3% landlords predicting capital gains.
When looking for rental yield, the poll of 187 landlords found 28% backed two-bedroom flats while 25% predicted student accommodation in university towns and cities.
A fifth selected one- or three-bedroom flats while 14% backed new-build properties.
Just 5% felt houses on established estates would provide decent rental yields.
John Jenkins, chief executive of Amicus, said: “The findings show flats are the clear winners over houses and maisonettes for both capital growth and rental yields, and this is reflected in our own experience in servicing professional landlords’ short-term borrowing requirements.
“Despite some uncertainty in the consumer buy-to-let sector as a result of changes to Stamp Duty charges, we’re seeing a sustained and growing appetite for short-term property finance, driven by the tightening of mainstream bank underwriting requirements and the inability of some lenders to act sufficiently quickly to respond to demand.”
I look at these stats and can only conclude that landlords don’t really have a clue. 25% think this and 20% think that.
New purpose build student accommodation. Guaranteed ROI of 8% for 5 years. Yes because without the guarantee they couldn’t sell it. Eventually the buyer will work out that there is no exit and yes his yield maybe great but he can’t actually recover his capital. it works for large institutional investors buying whole blocks but your small investor should a run a mile.
You can spray a big pile of poo liberally with perfume but when the perfume wears off, you are left with….
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Mark – I agree. If the majority opinion is 25pc then that means that a massive THREE TIMES that number do not have that opinion. Indecision speaks volumes.
Also, I think this survey is flawed.
1. I read this story yesterday and the sample size isn’t released. For all we know it was 20 landlords in that survey…
2. The time frame is all wrong. Landlords don’t care about the next year. They care about the next twenty/thirty/forty years!
Any landlord who measures their investment by what will happen in just the next 365 days is not a serious landlord.
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What results?
the whole article states that landlords believe… just 5% felt… landlords see…
This is not definitive proof that capital gains and rental yield is higher in 1 bed flats. it was a survey filled out by landlords. It doesn’t involve facts about capital gains.
What is their proof that flats are “clear winners over houses and maisonettes for both capital growth and rental yields”
“landlords believe” is not proof. Just because 24% of people believe it doesn’t make it true, look at UFO’s in America more than 50% believe they exist…BONKERS!
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