Landlords Feel Good About Buy to Let ProspectsMake Text Bigger
Landlords are feeling good about the prospects of their letting businesses, according to a new survey.
Around two-thirds of landlords rate their likely trading over the next three months as ‘very good’ or ‘good’, according to research by the National Landlords Association (NLA).
The sentiment survey asked 600 landlords their opinion about the private rented sector, and the general feeling was more than half (54 per cent) returned the top rating – up 8 per cent from the three months ending June 30.
The positive feelings did not extend to their reading of the wider economy, with only six per cent rating the country’s finances as ‘good’ – three per cent down on the same time last year.
David Salusbury, NLA chairman, said: “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.
“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.
“The private-rented sector is demonstrating its resilience, in marked contrast to some other industries and investments.
“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.”
The confidence of landlords in the buy-to-let industry is in sharp contrast to a consumer confidence survey by the Nationwide Building Society.
The Nationwide logged consumer confidence as sluggish at 49 points – way below the average 79 points.
“The combination of weak employment growth and wage increases that aren’t enough to keep up with the rising cost of living has acted as a dragging anchor on consumer confidence for some. The challenging labour market and high inflation are also coming through in our measures of spending sentiment,” said Robert Gardner, Nationwide’s chief economist.
“There has been a rise in the number of consumers who believe now is a bad time to make major purchases. With consumers continuing to expect a fall in house prices over the next six months, it is perhaps unsurprising they are expressing reservations towards making substantial financial commitments.”
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