Sentiment remains high for a large majority of landlords going into the New Year, according to the latest research from TML.
74% of residential buy to let landlords feel confident about the performance of the property market over the next 12 months, with 27% feeling very confident, according to research from The Mortgage Lender (TML).
Confidence in the future of the property market peaked for those landlords that predominantly owned homes of multiple occupancy at 86%, student accommodation landlords (84%) and portfolio landlords with more than five properties (82%).
When it came to the performance of their own rental properties over the next 12 months, 71% of landlords felt confident, with portfolio landlords (5+ properties) feeling the most confident at 78%.
Those more seasoned landlords who have been renting out properties for over 5 years were more likely to feel confident about their rental property portfolios over the next 12 months compared to those with less experience (73% vs 69%), possibly due to the fact that they have weathered a number of economic cycles.
With BTL playing a critical part in the residential market mix, tenant demand has remained buoyant, helping to keep these confidence levels up. Indeed, 73% of landlords said they’d seen demand from tenants increase over the last six months, with 27% saying it had been a significant increase.
This increased demand and the wider economic market is also impacting rental prices, with 73% of landlords reporting that they have increased their rental prices over the last 12 months, with the average going up by 34% amongst those surveyed.
52% said they had increased rents to keep up with the increase in their own rising costs, while a further 28% were following the lead of other properties in the area where asking rents had increased.
Chris Kirby, Head of Key Accounts & Specialist Distribution at The Mortgage Lender commented: “Given the pivotal role that the BTL industry plays in supporting the residential market and ensuring the maintenance of the much-needed supply of homes, it’s encouraging to see these levels of confidence.
"Despite the fact that many landlords are facing higher operating costs, and additional to the inflationary pressures that are impacting everyone, the continued supply of good quality, well maintained rental properties is a must.
“For landlords who are looking to expand their existing portfolio, or remortgage their properties, it’s important to seek broker advice to ensure they are accessing the best possible opportunities in the coming year.”
Source:- https://www.propertyreporter.co.uk/buy-to-let-landlords-confident-about-the-next-12-months.html