Buy-to-let optimism in buoyant market

Research from The Money Centre, one of the UK’s largest specialist buy-to-let mortgage brokers, indicates that despite several increases in the Bank of England base rate, landlords in the buy-to-let sector are optimistic about their investments.

The research shows that 73% of landlords surveyed see the overall prospects for their investment as ‘very good’ or ‘good’. A survey earlier this year produced a figure of 71% in the ‘very good’ and ‘good’ categories.

The Money Centre believes their optimism as rooted in the view that property is a long-term investment, rather than a means of short-term gain.

Of the landlords surveyed 69% rated property as having ‘above average’ investment potential, even though some were experiencing a slight reduction in rental yields.

Despite increased mortgage costs, 75% of respondents were making a profit, compared with 73% in February 2007.

This could reflect the fact that many landlords opt for fixed-rate mortgages and are benefiting from the upward trend in rent caused by higher interest rates.

Landlords are also feeling confident because the rental market remains buoyant; 48% of those surveyed had experienced no gaps between lets in the last year. In 2006, the average time a property stood unoccupied was 15 days.

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