Mortgage News
Landlords positive over buy-to-let market
The majority (81%) of landlords are positive about the future for the buy-to-let sector, according to the first quarterly survey of landlords from specialist lender, CHL Mortgages.
The survey also suggested the sector is a market of professional landlords as a majority (59%) stated that they manage their properties themselves, with 34% using the services of a lettings agent.
When asked whether they planned to buy or sell some of their investment properties in the near future, 38% said they intended to buy, 13% said sell, while 53% are content to sit tight with the properties they currently have.
The rental money gained from buy-to-let properties was sufficient to cover the mortgage payments, management and maintenance fees for 71% of landlords but 15% said it was only enough to cover the mortgage. Only 6.1% said their rental income was insufficient to cover their outgoings.
More than half (55%) said they had not experienced any rental voids in the last 12 months with 28% having to deal with a rental void in the last six months, and 17% in the last year.
Finally, only 12% of respondents said they were using Rental Guarantee Insurance to protect against voids and rent arrears.
Episode 1: First-time buyers : Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
The survey was completed by 359 respondents and undertaken in November 2009.
It was taken to give views on the current state of the buy-to-let market alongside thoughts on the future of the sector.