Landlords bullish on the future of rental properties
DESPITE the downbeat outlook on house prices from analysts at Morgan Stanley (see left), UK landlords are increasingly optimistic about their buy-to-let prospects.
Forty-nine per cent of landlords think that now is a good time to invest in new properties, according to research by LSL Property Services.
Just one per cent are looking at reducing their portfolio, with the vast majority confident that demand from tenants will grow over the next 12 months.
Landlords’ optimism is being buoyed by the growing number of people remaining in the rental market compared to before the downturn. In the last 12 months 185,600 fewer first-time buyers have entered the market than the average figures for 2005-8.
“Optimism among landlords is not only buoyant, but increasing,” said LSL’s David Newnes.
“Soaring rents and climbing demand from frustrated first-time buyers are not only making buy-to-let an attractive proposition for new property investors – but are encouraging existing landlords to grow their holdings before property prices increase once more.”