According to research conducted by Cambridge and Counties Bank, almost two thirds of landlords are optimistic about the outlook for the residential buy-to-let (BTL) sector over the next three years.

Of this, 13 per cent said they were “very” optimistic in terms of investment growth and yields.

However, only 20 per cent said they were very confident of their lender’s stability, with 18 per cent saying they were “not confident”, given recent announcements of funders like Lendy and Magellan going into administration or closing their books to new business.

Brexit remained a key uncertainty with 40 per cent of landlords conceding it was top of their list, followed by rising interest rates, a lack of confidence in the stability of lenders, and rising levels of tax, all at 32 per cent.

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Taking advantage of volatility

A significant number of the 539 landlords said they were using the current market volatility to grow their portfolios.

A fifth were looking to grow their portfolios by a third and 11 per cent wanted to double holdings over the next three years, with just 19 per cent of landlords looking to sell.

The lender noted that in addition to growing property portfolios, a significant number of landlords said they would be refurbishing their properties, with an average of £10,000 set to be spent.

One in 10 said they would spend more than £20,000, with 4 per cent forecasting they would invest more than £50,000.

Cambridge & Counties Bank chief commercial director Simon Lindley said: “In spite of Brexit worries, it is great to see that the overall outlook for the commercial property sector is one of optimism.”