Third of Landlords Ready to Buy More Rental Homes

Third of Landlords Ready to Buy More Rental Homes

17:00 PM, 15th May 2012, About 12 years ago

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Nearly a third of landlords have plans to buy more rental property this year, according to specialist buy to let lender CHL Mortgages.

Landlord confidence is running high with just 1 in 10 aiming to sell property or leave buy to let, with 31% set to expand their portfolios, while the rest continue with business as usual.

Almost a fifth of landlords (17%) have bought a rental property in the past year.

A concern for many (28%) is how rising mortgage rates may affect their cash flow and profitability, but generally, landlords are happy with their lot.

Managing director Bob Young reckoned the survey results show that landlords are positive about the private residential sector.

“Just under a third of current landlords intend to supplement their existing portfolios with further property acquisitions and this figure is likely to be complemented by new entrants and the usual smattering of accidental landlords, meaning the buy-to-let market is likely to remain in good health for the foreseeable future,” he said.

“A number of landlords are happy to sit tight and play the waiting game however and this could be down to a number of factors including the level of deposit now required to access finance, potential concerns about future interest rate rises and the fact many lenders are still finding it difficult to access funding lines and have less appetite to lend than historically.

“All in all, the buy-to-let market is a positive place to be at present and while landlords are not immune to wider economic uncertainty, they are confident in existing and future tenant demand, and where appropriate, and given the right finance arrangements, will be seeking to add to their portfolios.”

Another recent survey by Paragon Mortgages also echoed landlord confidence among mortgage brokers, with 80% expecting the market to continue growing for the rest of 2012.

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