LSL Property Services Plc’s latest landlord sentiment survey shows an increase in optimism within the buy to let market with 49 per cent of landlords stating that now is a good time to invest, while just 1 per cent believed that now was a good time to reduce their portfolios. Over the next twelve months, 86 percent of landlords polled will either increase their portfolio or maintain the same levels.
With demand high, rents are higher and in order to exceed the current rental income the average buy to let tracker mortgage would need to increase by 3.25 per cent. Good news for landlords, although 54 percent are finding that obtaining mortgage finance is still harder than it was at this point last year. Not at all surprising then that 48 per cent of landlords who purchased property in the last twelve months were cash buyers.
Of course the reason for this renewed optimism is the current demand for rental accommodation with fewer first time buyers entering the property market. More than half of the landlords who were asked had seen a rise in demand over the last twelve months.
David Newnes, Estate Agency Managing Director for LSL said:
“Optimism among landlords is not only buoyant, but increasing. Soaring rents and climbing demand from frustrated first-time buyers are not only making buy to let an attractive proposition for new property investors — but are encouraging existing landlords to grow their holdings before property prices increase once more.”
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