Landlords snap up homes as rents bounce back

Almost three quarters of London-based landlords bought their buy-to-lets outside the capital in the first three months of this year, compared with less than a quarter a decade ago.

In the North East, which offers the highest gross yields in the country at an average of 9pc, investors bought almost 30pc of all homes sold in the first quarter of 2022. In the same period last year, landlords made up 20pc of buyers in the area. 

While investors’ appetite for buy-to-let grew in nine of the 11 UK regions, Scotland bucked the trend. Here, landlords made up 7.9pc of buyers in the first three months of the year, down from 10pc in the same period in 2021. 

Scottish investors have weathered a series of strict tax and regulatory changes, with more red tape on the horizon. The Scottish Government is currently consulting on a raft of rental reforms, including the introduction of rent controls by the end of 2025. 

The number of properties in the country’s private rented sector dropped by 22,000 between 2017 and 2020, according to analysis of landlord registrations by the Scottish Association of Landlords.

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