Two surveys of buy-to-let investors have highlighted continuing confidence in the market and the importance of intermediaries in the buying process.
A survey from BM Solutions found that intermediaries still have a crucial role in the buy-to-let market as 58% of investors now require assistance compared to the lender’s 2002 survey which showed only 41% of buyers consulted brokers.
Steve Sandiford, head of borrowing products at BM Solutions, said: ‘The findings of this research will be very encouraging for intermediaries. Respondents clearly identify brokers’ importance in the buy-to-let process and there is definitely scope for them to capitalise on the need for focused advice which undoubtedly exists, especially as 76% of respondents still intend buying new properties.’
Elsewhere, Paragon Mortgages latest survey of buy-to-let trends shows average portfolio size in June 2003 at 10.6 properties, up from 9.0 properties at the end of 2002. On average landlords are planning to increase the number of properties in their portfolios by 8.6% over the next 12 months.
While, on average, gross rental yields have slipped slightly from 8.5% to 7.9% (due mainly to property value rises), landlords are expecting them to hold steady over the next 12 months at around 8%.
John Heron, managing director of Paragon Mortgages, said: ‘ While property values are continuing to rise, yields are now stabilising and are expected to remain solid over the next 12 months.’