Landlord optimism hits four-year high
Strong tenant demand and increasing availability of lending has seen optimism among owners of buy-to-let property soar to a four-year high.
The latest Landlord Optimism Index from the National Landlords Association (NLA) reveals that, during the second quarter of 2011, 65 per cent of landlords rated prospects for their own lettings business over the next three months as either 'good' or ' very good' - the highest proportion since 2007.
Furthermore, buy-to-let property owners are also increasingly positive about the overall state of the private rented sector, with 54 per cent rating the industry's prospects as good or very good, a rise of eight per cent compared with the same period last year.
The increase could be a result of the rapidly rising demand for rented accommodation seen in recent months, which in turn has pushed up rental yields.
This has also had the effect of prompting more lenders to enter the buy-to-let mortgage market, meaning more competitive borrowing rates for landlords.
"After a challenging few years, it is encouraging to hear that the majority of landlords are feeling positive about their lettings business and the overall state of the private-rented sector," said David Salusbury, chairman of the NLA.
"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. "
However, the survey also revealed deepening concern among landlords regarding the state of the wider UK economy.
The NLA's poll found that only six per cent of landlords rate the outlook for the UK financial market as positive, a decrease of three per cent compared with the same time last year.
"Like other business people, it is 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," said Mr Salusbury.
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