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Confidence prevails in buy-to-let sector

David French

December 15, 2007

The study, which contradicts recent reports of a slowdown, showed that 60 per cent of landlords are undaunted by the negative reports, with 86 per cent of investors planning to increase their portfolio over the coming months or leave it untouched in 2008. The average size of the respondents’ portfolios currently stood at 6.1 properties, an increase from an average of 5.7 six months ago.

Of the 3,867 landlords surveyed, 95 per cent were confident rental yields would remain robust, with a third believing they would increase. Rental yields were holding steady at 5.72 per cent, according to the data, with the highest levels of rent being commanded in the East Midlands and Scotland. The South West had the strongest rental growth, up 7 per cent since October 2006.

Jeremy Law, head of BTL at Mortgage Express, said: “With brokers continuing to play a key role in influencing a landlord’s decision when it comes to choosing a mortgage , they will have an important role to play in the continuing success of BTL.”

Ashley Clark, director of Need An Adviser.com, said: “The investor with assets to back the investment is in a very strong negotiating position. However, for the new BTL investor, it may prove too difficult.”

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