According to a recent survey conducted by Castle Trust Bank, refurbishments and houses in multiple occupation (HMOs) have emerged as the top choices for property investors in the last three months.
The survey conducted by Castle Trust Bank’s Pulse Surveys revealed that approximately 40% of brokers identified refurbishments as the most popular specialist property investment among their clients. Property conversions followed closely behind, with around 18% of brokers stating that their clients favored this option.
HMOs were also highly sought after by investors, with nearly a quarter of brokers reporting them as the most popular choice. These properties offer the potential for higher rental yields as they are rented out to multiple tenants, creating multiple income streams.
The appeal of refurbishments and HMOs can be attributed to investors’ desire to increase their returns. Anna Lewis, the commercial director at Castle Trust Bank, commented on this trend, stating, “Landlords are increasingly looking at ways they can increase their returns, and property refurbishment is the most common way they choose to do this.”
The Least Popular Choices: Holiday Lets and Property Conversions
While refurbishments and HMOs have enjoyed significant popularity among property investors, the survey also revealed the least popular specialist property types. Around 45% of brokers cited holiday lets as the least popular choice, followed by just over a third who mentioned property conversions.
Holiday lets, despite being a potentially lucrative investment due to tourism, seem to be less favored by investors. On the other hand, property conversions, which involve transforming existing buildings into residential or commercial units, may present challenges that deter investors.
Choosing the Right Mortgage Lender: Factors to Consider
When it comes to choosing a mortgage lender, speed of decision-making holds the most importance for brokers, with nearly 29% considering it the most crucial factor. Certainty of decision came in second, with 24% of brokers prioritizing it, and interest rates were a close third at 21%.
This emphasis on speed and certainty in decision-making aligns with the current uncertain environment and frequently changing interest rates. In a competitive market, the ability to make swift decisions allows investors to respond quickly to market opportunities and build their property portfolios.
Anna Lewis further highlighted this point, stating, “In a competitive market, speed and certainty have always been crucial in bridging, enabling investors to respond quickly to market opportunities and build their portfolios.”
Conclusion
If you are an aspiring property investor, it is worth considering refurbishments and HMOs as your top choices. These properties offer the potential for increased returns and multiple income streams. However, it is essential to carefully analyze the market and understand the potential challenges that come with each property type.