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Buy-to-let optimism continues to grow

Buy-to-let optimism continues to grow

Category: Buy To Let

Updated: 08/11/2011
First Published: 08/11/2011

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 It is now over 6 months old so the content may be out of date.

Landlords continue to foresee an ever brighter future for the buy-to-let market and plan to increase their portfolios as a result.

Almost three quarters (72%) of landlords claimed they were increasingly positive about the outlook for buy-to-let, according to the latest survey from CHL Mortgages, compared with 67% in the summer, and 64% a year ago.

Rising optimism was also evident in the increase in the number of landlords who plan to buy more investment properties in the next 12 months.

However, while over a third (35%) of buy-to-let investors intend to make further acquisitions in the coming year, many claimed that their hands are still tied by extenuating factors.

Four in ten (40%) landlords said a lack of available funding for both new purchases and remortgage were holding back their expansion plans, while 37% were being hampered by high deposit requirements on buy-to-let mortgage deals.

With almost nine in ten (88%) landlords claiming the rental income they receive is sufficient to cover their mortgage payments, management and maintenance fees, it is easy to see why investors are keen to get their hands on more properties.

"More landlords are looking to acquire new properties if they can square the circle of finding available finance and meeting the higher deposits that are required by lenders," said Bob Young, managing director at CHL Mortgages.

"This positivity is clearly fuelled by a growing demand for private rental properties from tenants and a significant improvement in the rental yields available.

"All in all, it is possible to see from our results why the expectation is for a growing buy-to-let market in the short-term and beyond.

"There is clearly an appetite to add to portfolios amongst the landlord community and it is therefore hard to envisage the demand for buy-to-let finance dropping off any time soon."

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