Landlords are optimistic for the future as they look to maintain or expand their portfolios in the next 12 months, research from Butterfield Mortgages Limited (BML) has found.
The prime London mortgage provider commissioned an independent survey of 501 landlords with buy-to-let (BTL) mortgages.
Two-thirds (60%) of landlords were optimistic – both in terms of capital growth and rental returns – about the future performance of their property investments.
More than half (57%) of respondents revealed that this interest rate cut has had a positive impact on their investments, while a similar number (58%) believed 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 said they will increase (38%) or maintain (49%) the size of their portfolios.
A small minority (10%) said they would reduce the number of properties they own.
BML’s research also found that 56% of landlords believed that the predicted exodus of landlords from the BTL market has been greatly exaggerated.
Alpa Bhakta, CEO of Butterfield Mortgages Limited, 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.”