UK landlords confident in future of buy-to-let market
There could be a boom in UK property investment as landlords look to take advantage of rising demand, a new survey suggests.
According to a poll by specialist lender CHL Mortgages, a third (33 per cent) of landlords are looking to invest in more properties over the coming 12 months, up from 28 per cent a year ago.
This is due to rising confidence in the buy-to-let market, with many landlords predicting that already high tenant demand will continue to rise.
More than two-thirds (67 per cent) said they were positive about the future of buy-to-let, an increase of three per cent compared to 12 months ago, while 43 per cent said rental demand is now better than six months ago and is sufficient to cover mortgage repayments, maintenance and costs - up from 35 per cent who felt likewise last year.
"Clearly, a lack of credit, tougher lending criteria and higher deposit requirements are suppressing residential property ownership for many, which is resulting in considerable pent-up rental demand a real positive for the private rental sector," said Bob Young, managing director at CHL Mortgages.
"With uncertainty in the equity and bond markets we can therefore expect more investors to reconsider buy-to-let as an alternative asset class; even more so if property prices continue to fall over the next couple of years."
However, the survey also revealed that a lack of access to finance is the main obstacle facing those looking to invest in buy-to-let properties.
Earlier this month, a poll of residential landlords by Paragon Mortgages revealed that almost a third of landlords (29 per cent) have seen their rental income increased during the second quarter of 2011.
Four out of ten landlords said that they believe tenant demand is either growing or 'booming', and will continue to do so for the next 12 months.
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