Buy-to-let is enjoying a surge in popularity among investors, with two-thirds of landlords planning to add at least one property to their portfolio in the next six months.
Mortgages for Business revealed 66 per cent of landlords are preparing to invest in property by the end of 2015, up from the 55 per cent who said they would do so in November last year.
And with just eight per cent admitting they are thinking of selling a property in the near future, it is clear that rental portfolios are generally heading in only one direction.
“A strong rental market is being driven by tenants moving to make the most of job opportunities, and now gradually starting to earn more too. That new surge of demand is putting more upwards pressure on rents, and landlords are only just beginning to supply more homes to let in response,” explained David Whittaker, managing director at Mortgages for Business.
Confidence in the buy-to-let sector is evidently booming and this was also illustrated in a recent Lloyds Bank study that found the balance of investors who are optimistic about the market versus those who are negative has risen from 47.1 to 55 per cent.
This is reflected in the latest figures from the mortgage industry, which showed buy-to-let was the only growth area in April.
Paragon Mortgages’ Financial Advisor Confidence Tracking Survey found the majority of financial advisors expect more buy-to-let business to be done over the coming months. Some 91 per cent of respondents also said they felt demand from landlords for buy-to-let mortgages is either stable or growing.
Last month’s general election result is one possible reason for the positive trend and rising confidence. The Conservatives’ victory ensures several notable Labour policies - such as the mansion tax and the scrapping of non-domicile tax status - will not come to fruition, removing some of the threats that were hanging over landlords in the run-up to voting day.
In the year to April, there were 17,200 buy-to-let mortgages granted in the UK, and this figure could be topped throughout the rest of 2015 as the rental sector continues to grow.
If you are thinking about expanding your portfolio or considering investing in buy-to-let for the first time, contact your local Leaders branch where the experienced and knowledgeable team is ready to offer useful advice and local market insight to help you make the most of your money.