Buy-to-Let Landlords Look Ahead to a Promising Next 12 Months
A recent study by The Mortgage Lender (TML) revealed that 74% of residential buy-to-let landlords are optimistic about the property market's performance in the next 12 months. Among them, 27% express a high level of confidence.
Interestingly, landlords with over 5 years of experience in renting out properties tend to be more positive about their rental portfolios compared to those with less experience (73% versus 69%). This could be attributed to their seasoned exposure to various economic cycles.
Tenant Demand Keeps Buy-to-Let Confidence High in Residential Market Mix
The buy-to-let sector remains integral to the residential market mix, with sustained tenant demand contributing to landlords' confidence. A noteworthy 73% of landlords report an increase in tenant demand over the past six months, with 27% describing it as a significant rise.
73% of Landlords Report Rental Price Increases in the Past Year
This surge in demand, coupled with broader economic factors, is impacting rental prices. Approximately 73% of landlords have raised their rental prices in the last year, with an average increase of 34% among survey respondents.
When asked about the reasons behind the rent hikes, 52% cited the need to cope with their own rising costs. Additionally, 28% mentioned aligning their rental prices with the prevailing trend in the area where asking rents had increased.
Chris Kirby of TML Emphasises the Pivotal Role of Buy-to-Let Industry
Chris Kirby, Head of Key Accounts & Specialist Distribution at The Mortgage Lender, noted, “It's reassuring to observe this level of confidence in the buy-to-let industry, considering its crucial role in supporting the residential market and ensuring a consistent supply of homes. Despite the challenges of higher operating costs and general inflationary pressures, maintaining a supply of well-kept rental properties remains essential."
Kirby advises landlords contemplating portfolio expansion or property remortgaging to seek broker advice for optimal opportunities in the upcoming year.
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