Mortgage News
A third of landlords have plans to expand buy-to-let portfolio – CHL
One in three investors are planning to increase their buy-to-let property portfolio this year, reports lender CHL Mortgages.
The survey found that 31% of landlords are looking to expand their range of properties with just 10% of respondents aiming to downsize their portfolio this year. 59% said they were happy with their current holdings.
The percentage of investors looking to expand has remained steady since last year, with 17% of respondents stating they have already added to their portfolio in the past 12 months.
Overall, 71% of investors in the buy-to-let market are optimistic about the outlook for 2012, with 66% rating their properties in this sector as a resilient concern. However, 28% claimed their portfolio may be vulnerable to potential rate increases.
CHL Mortgages’ managing director Bob Young said that the results show landlords remain positive about the market.
“Just under a third of current landlords intend to supplement their existing portfolios with further property acquisitions and this figure is likely to be complemented by new entrants and the usual smattering of accidental landlords, meaning the buy-to-let market is likely to remain in good health for the foreseeable future.
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“A number of landlords are happy to sit tight and play the waiting game however and this could be down to a number of factors including the level of deposit now required to access finance, potential concerns about future interest rate rises and the fact many lenders are still finding it difficult to access funding lines and have less appetite to lend than historically.
“All in all, the buy-to-let market is a positive place to be at present and while landlords are not immune to wider economic uncertainty, they are confident in existing and future tenant demand, and where appropriate, and given the right finance arrangements, will be seeking to add to their portfolios.”