Two-thirds of buy-to-let (BTL) landlords have said they feel optimistic about the future of their property investments when it comes to both capital growth and rental returns, a survey from a lender found.
A poll of 500 BTL landlords conducted by Butterfield Mortgages revealed that the lower base rate had also improved sentiment, as 57% of respondents said this had a positive impact on their investments.
Some 58% of respondents said BTL investments were still “highly attractive” in the current climate.
Looking forward to the behaviour of BTL landlords over the next 12 months, 49% said they planned to maintain the size of their property portfolio, while 38% wanted to increase it.
Just a tenth of respondents said they would reduce the number of properties they held.
Further, 56% of respondents felt predictions that landlords would be leaving the BTL sector were “greatly exaggerated”.
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Alpa Bhakta, CEO of Butterfield Mortgages Limited, said: “It cannot be denied that the BTL 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.”
She added: “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.”