Half of landlords think it is a good time to invest in buy-to-let

Landlords’ confidence in buy-to-let has been bolstered by strong tenant demand and attractive purchase prices.

According to a new survey from LSL Property Services, nearly half of landlords (48%) believe that now is a good time to invest in property, while less than 1% think it is now a good time to cut back on their portfolios. Four-fifths of landlords who think now is a good time to buy rental property cited attractive property prices, while 53% mentioned strong tenant demand.

David Newnes, director of LSL Property Services, said: “House prices are still subdued in many parts of the country and tenant demand is still growing. This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in buy-to-let as a long-term investment.”

LSL’s latest Buy-to-Let Index showed rents hit a record high of £725 in England & Wales in July. In the past six months, 44% of landlords have seen a rise in tenant demand, while just 1% have seen a decrease in demand. Two thirds of landlords (64%) anticipate demand will increase further in the next twelve months.

Four in ten landlords expect to increase rents in the coming 12 months, with just one in a hundred investors expecting they will reduce rents. Those expecting to raise rents anticipate they will do so by an average of 4.5%.

While nearly half of all landlords think now is a good to buy rental property, raising mortgage finance remains a key concern. 50% of landlords who have recently attempted to raise mortgage finance think it is more difficult to secure than a year ago, while only 11% believe it is now easier to obtain mortgage finance.

The cost of finance remains an issue, with 45% of landlords who have recently taken out a mortgage reporting that monthly payments are more expensive than twelve months ago.

Article courtesy of the Independent

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