The latest landlord annual survey by specialist lender CHL Mortgages has found that 67% of private sector landlords are confident about the future of the buy-to-let sector.
The survey also showed that the percentage of landlords saying that rental demand has risen over the last six months and is enough to cover mortgage payments, maintenance and costs was 43%. This is a healthy increase on last year’s 35%.
One in five respondents also said they would now consider fixing their BTL mortgage in case interest rates did go up.
CHL sells mortgages via the intermediate broker channel and has 44,477 loans on its books and the number of its accounts greater than three months in arrears had fallen from 2010’s 933 to 855, which is 1.92% of the loan book. CHL expects this downward trend to continue and something they feel also shows the strength of BTL as an investment.
Bob Young, the CHL managing director, said ‘Our 2011 Landlord Survey confirms that buy to let remains an attractive asset class for savvy investors. Landlords are clearly positive about the future of buy to let and they have good reason to feel this way with rental demand growing as a result of a number of underlying drivers. ………… With uncertainty in the equity and bond markets we can therefore expect more investors to reconsider buy to let as an alternative asset class; even more so if property prices continue to fall over the next couple of years.’
33% of landlords said that they were looking to buy more investment property over the next year, an increase from last year’s 28%. However they said that the lack of mortgage finance and the need for large deposits were still constraining factors.