Mortgage News
Landlords express confidence over 2010 buy-to-let market
A majority (64%) of UK landlords feel more confident about the buy-to-let market as 2010 begins, according to the latest rental confidence index from Upad.
The figure represents a 6% increase from the same survey in December. In the January survey from Upad, 185 landlords were asked whether they were more confident or less confident about the buy-to-let market in December.
Comments from the 2010 survey respondents who felt more confident included one landlord who said: “More repossessions, uncertainty with interest rates, difficulty in getting mortgages all add up to an improved buy-to-let market” and another landlord who said his confidence was due to more students looking for rooms.
For the 36% who are feeling less confident, statements included: “Buy-to-let mortgages are very difficult to get. Those available require very high arrangement fees – around 3%, and or low mortgage to value, or a high deposit.” and “Payments of housing benefit going direct to the tenant is making life very difficult…This is increasing voids and homelessness.”
James Davis, founder and chief executive officer of Upad, said the results from thesurvey bode well for the private rental sector.
He added: “I believe it will see real growth during 2010. Many professional landlords are taking a medium- to long-term view by taking advantage of purchasing deals in the current economic climate. In doing so they run their portfolio like a business, which will help to minimise unnecessary void periods.”
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In the December survey, 233 UK landlords were questioned with 58% said they felt more confident. Upad launched in October 2008 and enables landlords to advertise a property for a one-off cost of £59.