Research indicates positive sentiment among landlords regarding property investments, with many planning to maintain or grow their portfolios.
- A survey conducted by Butterfield Mortgages Limited reveals two-thirds of landlords are optimistic about capital growth and rental returns.
- Interest rate cuts have positively influenced the property investments of more than half of the surveyed landlords.
- Many landlords remain confident in buy-to-let investments, viewing them as attractive even in challenging economic conditions.
- Despite challenges, landlords are determined to navigate upcoming regulatory changes with flexibility and support from brokers and lenders.
In a revealing survey commissioned by Butterfield Mortgages Limited, 501 landlords with buy-to-let mortgages expressed a notably positive outlook on their property investments. A significant two-thirds of these participants were optimistic about both capital growth and rental returns, indicating a robust level of confidence in the sector’s future performance.
The survey highlighted that over half of the landlords benefitted from recent interest rate cuts, which have bolstered their investment positions. This financial adjustment is perceived as a key driver making buy-to-let investments highly attractive, even amidst broader economic uncertainties.
Looking ahead, most landlords plan to either expand or maintain their current portfolios over the next year. Specifically, 38% of respondents intend to increase their property holdings, while 49% aim to sustain their existing levels. Conversely, only 10% indicated a reduction in their portfolios, underscoring a generally expansionary strategy.
Moreover, Butterfield Mortgages Limited’s findings dispel the widely anticipated exodus from the buy-to-let market, with 56% of respondents suggesting that such predictions are exaggerated. The report underscores landlords’ ongoing willingness to invest in the rental market, crediting steady rental incomes and capital gains as primary motivators.
Alpa Bhakta, CEO of Butterfield Mortgages Limited, emphasised the sector’s resilience, noting, “The sector’s resilience can be attributed to two key factors: strong rental income and steady capital growth.” This assertion aligns with landlords’ optimism, despite imminent challenges such as increased taxation and regulation expected in the approaching Autumn Budget.
The report suggests that landlords will require continuous support from brokers and bespoke solutions to tackle any regulatory hurdles effectively. Flexibility in financial products and collaborative efforts between brokers and lenders are deemed essential for landlords to thrive in the evolving economic landscape.
The findings underline that landlords remain positive and prepared to adapt strategically within the buy-to-let market.
