According to new research, a third of landlords are boosting their buy-to-let portfolios in 2014, in the wake of escalating property prices and a host of attractive buy-to-let mortgages.T...
According to new research, a third of landlords are boosting their buy-to-let portfolios in 2014, in the wake of escalating property prices and a host of attractive buy-to-let mortgages.
The study, conducted by The Online Letting Agents, reveals that just 11% of landlords plan to sell some of their buy-to-let properties this year, as rising rents and a drop in rent arrears give landlords bumper yields.
The research also shows that more than a third of landlords are planning to increase rent over the next 12 months and of those, a third will be introducing rent increases of up to 5%. Just one in five landlords has experienced rent arrears over the last 12 months, with the majority (57%) of those landlords experiencing late payment of up to just 6 weeks.
The research reveals that the majority of landlords are very optimistic about property prices, believing that they will continue to rise this year. During the next 12 months, over a third of landlords predict that property prices will rise by between 6-10% in their area, whilst the majority (65%) are more cautious, predicting price rises of up to 5%.
Eleanor Carroll, Director of The Online Letting Agents said that the new research shows that confidence among landlords is running high, as the economy moves out of recession and the rental market booms.
“Falling rental arrears, the increased availability of buy-to-let mortgages and the rise in rents have all contributed to the booming rental market. In fact, new figures show that the number of buy-to-let loans leapt 56% in the 12 months to March, as the rental market continues to power ahead. We have experienced over a 60% increase in landlords sign up to our lettings service year on year, which is a clear reflection of the growing buy-to-let market.
The number of people living in private rented accommodation has risen from 2.2 million in 2002/03 to nearly 3.9 million last year. Home ownership has fallen to its lowest level for a quarter of a century, as soaring property prices have seen the number of people renting almost double.”