Buy-to-let landlords are optimistic about maintaining or expanding their portfolios over the next twelve months.
Alpa Bhakta
This is evident from Butterfield Mortgages’ survey of 501 UK landlords with BTL mortgages which found that two-thirds (60%) are optimistic – both in terms of capital growth and rental yields – about the future performance of their property investments.
More than half (57%) of respondents said the recent interest rate cut has had a positive impact on their investments, while a similar number (58%) believe BTL investments remain very attractive in the current environment.
When asked about their investment strategies over the next twelve months, the vast majority of landlords highlighted that they would increase (38%) or maintain (49%) the size of their portfolio. A small minority (10%) said they would reduce the number of properties they own.
BML’s research also found that more than half (56%) of landlords believed the predicted exodus of landlords from the BTL market had been greatly exaggerated.
Alpa Bhakta, CEO of Butterfield Mortgages, commented: “There is no denying that the buy-to-let (BTL) sector has faced significant challenges in recent years, but our findings show that landlords are keen to invest in the British rental market.
“The resilience of the sector can be attributed to two key factors: strong rental income and steady capital growth. Encouragingly, both indicators have shown positive momentum in recent months, suggesting that landlords’ appetite for investment will continue to grow as economic conditions improve.”
Bhakta added: “That said, brokers and lenders need to be aware of the challenges ahead, especially as we approach the autumn budget. Additional taxes and regulations are likely to be introduced, so landlords will need ongoing support and tailored guidance to overcome any new obstacles.
“Flexibility and tailor-made solutions will be critical to the success of the sector going forward, so brokers and lenders must work together to ensure borrowers have access to the financial products they need to get through the second half of to flourish this year.”