November 10, 2011
Buy To Let Landlords Positive
Landlords are increasingly positive about the outlook for the buy-to-let market in the UK, according to specialist lender CHL Mortgages’ latest Landlord Survey.
Some 72% of all respondents to the survey said they were positive about the future of buy-to-let, up from a figure of 67% in summer 2011, and 64% 12 months prior to that.
Increased positivity from buy-to-let sector participants was also visible with a rise in the number of landlords who plan to buy more investment properties in the next 12 months.
Some 35% of respondents planned to make further acquisitions, up from 33% in the summer.
Those who are looking to purchase more property say they are still constrained by both a lack of available funding for both new purchases and remortgage (40%) and the high deposit requirements (37%) that come with buy-to-let products.
Only 7% cite a lack of available stock as a reason why they are unable to purchase.
Landlords were also more positive about current demand for rental investment properties with 47% suggesting it is now better than six months ago (up from 43% in the summer), with a significant 88% now saying the rental income they receive is sufficient to cover their mortgage payments, management and maintenance fees.
CHL believes this is further proof of the growing demand for private rental properties and that rental yields for residential investment properties continue to increase.
