Landlords expect rise in tenant demand in 2014
Almost 60 per cent of landlords expect to see a rise in demand for rental properties in the next 12 months, according to a landlord sentiment survey conducted by LSL Property Services.
While 41 per cent of the 2,195 respondents reported a rise in tenant demand in the last six months of 2013, 58 per cent believe there will be a continued rise this year.
Less than 10 per cent forecast a slight decline in demand.
With such interest from tenants fuelling a rise in property prices, more than three-quarters of landlords believe now is a good time to buy or sell rental properties, with 18 per cent of respondents expecting to grow their own portfolio in the next 12 months.
However, a third of respondents say it is harder to raise mortgage finance now than one year ago.
Just one in six cite cheap finance as a key reason for why it is a good time to invest, though this is up from one in 11 in December 2012.
LSL Property Services director David Newnes says: “Landlords are in a prime position to benefit from the strong yields on properties and aspiring buy-to-let investors can be encouraged by the climbing tenant demand, as not only does it signify the excellent long-term investment opportunity, but also demonstrates the continued appetite for rental homes.
“Against the backdrop of growing economic stability, more confidence is driving people forward in search of the attractive deals on offer across the buy-to-let mortgage market, which will allow them to benefit from the attractive returns.”
Article courtesy of Mortgage Strategy