Landlord optimism hits four-year high - Mortgages - News - Moneyfacts

News

Landlord optimism hits four-year high

Landlord optimism hits four-year high

Category: Mortgages

Updated: 25/08/2011
First Published: 25/08/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Landlord optimism is at its highest level for almost four years, as the buy-to-let boom continues to gather pace.

The latest research from the National Landlords' Association (NLA) revealed 65% of landlords rated prospects for their own lettings business over the next three months as 'good' or 'very good'.

At the same time, landlords are increasingly optimistic about the overall state of the private rented sector.

More than half (54%) rated the industry's prospects as 'good' or 'very good', an increase of 8% compared with the same quarter in 2010.

However, uncertainty still remains about the state of the UK financial market with only 6% rating this positively, down 3% compared with the same time last year.

David Salusbury, NLA chairman, said that after a challenging few years, the majority of landlords are feeling positive about their lettings business and the overall state of the private-rented sector.

"The increasing availability of buy-to-let mortgages and strong demand for rental accommodation is further stimulating positive sentiments, with rent arrears appearing to stabilise and void periods decreasing in recent months," he added.

Recent research from Moneyfacts.co.uk showed the number of buy-to-let mortgages available to prospective and existing landlords has been rising steadily since the start of 2010.

At present, landlords have a choice of 502 buy-to-let mortgages, compared with the 272 that were available in August last year.

Despite the resilience being demonstrated by the private-rented sector, Mr Salusbury added that it was clear that landlords are not immune from the effects of financial uncertainty.

"The fragile state of the economy is a concern for landlords, many of whom have mortgages to pay or rely on their property portfolios to earn a living," he added.

"The cuts to local housing allowance are a further worry for tenants and landlords alike; both should be mindful of how they may be affected and give consideration to how they will deal with the long-term consequences of welfare reform."

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close