Almost three quarters (74 per cent) of buy-to-let landlords feel confident about the performance of the property market over the next 12 months, research from The Mortgage Lender has revealed.
The research found that confidence in the market’s future peaked for those landlords that predominantly owned homes of multiple occupancy (86 per cent).
This was ahead of student accommodation landlords (84 per cent) and portfolio landlords with more than five properties (82 per cent).
TML head of key accounts and specialist distribution, Chris Kirby, commented that, given the pivotal role that the BTL industry plays in supporting the residential market, it’s “encouraging” to see the levels of confidence.
“Despite the fact that many landlords are facing higher operating costs, and additional to the inflationary pressures that are impacting everyone, the continued supply of good quality, well maintained rental properties is a must,” he added.
“For landlords who are looking to expand their existing portfolio, or remortgage their properties, it’s important to seek broker advice to ensure they are accessing the best possible opportunities in the coming year.”
The research also examined tenant demand, finding that it has “remained buoyant”, which helps to keep these confidence levels up.
Indeed, 73 per cent of landlords said they had seen demand from tenants increase over the past six months, with 27 per cent saying it had been a significant increase.
This increased demand and the wider economic market was reported to be impacting rental prices.
The research found that 73 per cent of landlords reported they had increased their rental prices over the last 12 months, with the average rising by 34 per cent amongst those surveyed.
Additionally, 52 per cent said they had increased rents to keep up with the increase in their own rising costs, while a further 28 per cent were following the lead of other properties in the area where asking rents had increased.
tom.dunstan@ft.com
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