Research from The Mortgage Lender (TML) has found that energy efficiency is a key consideration for 25% of landlords when adding to their investment portfolios.
This focus on energy efficiency comes despite the Government’s decision last year to relax energy efficiency standards for buy-to-let (BTL) properties, removing penalties for landlords who do not upgrade their properties.
Landlords are also weighing up other factors such as price (48%), expected rent yield (29%), and the long-term investment potential (23%) of a property.
The attractiveness of a location (29%), favourable council tax banding (17%), properties being ready to move into (16%), and interior layout (16%) are also important.
When it comes to purchasing their next rental property, 24% of landlords said they would do so as individual investors with a mortgage, while 22% would buy with cash.
Meanwhile, 10% are considering buying their next property as a limited company with a mortgage, and 11% as joint investors with a mortgage.
Mortgage rates remain a critical concern, with 77% of landlords citing the rate of mortgage available as an important factor in their decision-making process.
Other significant factors include the fluidity lenders offer in terms of borrowing amounts (76%), discounts on fees (72%), flexibility on criteria (72%), and the support provided by the lender (70%).
Chris Kirby, head of sales – Midlands, South & specialist distribution at The Mortgage Lender, commented on the findings: “It’s encouraging to see that BTL landlords are continuing to adapt and shift their priorities… It shows just how committed many landlords are to staying ahead of the curve and anticipating tenant expectations.”
