Buy-to-let landlords are optimistic for the future as they look to maintain or expand their portfolios over the next year, according to new research from Butterfield Mortgages (BML).
The prime London mortgage provider commissioned an independent survey of 501 UK landlords with buy-to-let mortgages. It found that 60% of UK landlords are optimistic – both in terms of capital growth and rental returns – about the future performance of their property investments.
57% of respondents revealed that this interest rate cut has had a positive impact on their investments, while a similar number (58%) believe that buy-to-let investments remain highly attractive in the current climate.
When asked about their investment strategies in the next 12 months, the majority of landlords say they will increase (38%) or maintain (49%) the size of their portfolios. A small minority (10%) will reduce the number of properties they own.
BML’s research also found that 56% of landlords believe that the predicted exodus of landlords from the buy-to-let market has been greatly exaggerated.
Alpa Bhakta, CEO of Butterfield Mortgages, said: “It cannot be denied that the buy-to-let sector has faced considerable challenges in recent years, but our findings show that landlords remain eager to invest in the UK rental market. The sector’s resilience can be attributed to two key factors: strong rental income and steady capital growth. Encouragingly, both of these indicators have shown positive momentum in recent months, suggesting that landlords’ appetite for investment will continue to grow as economic conditions improve.
“That said, brokers and lenders must be mindful of the challenges that lie ahead, particularly as we approach the Autumn Budget. Additional taxation and regulation are likely to be introduced, so landlords will need ongoing support and tailored guidance to navigate any new hurdles that arise. Flexibility and bespoke solutions will be critical to the sector’s success going forward, so brokers and lenders need to collaborate to ensure borrowers have access to the financial products they need to thrive in the latter half of this year.”