13th
Jan 2021
In spite of the financial mess, health and increasing regulations caused by the pandemic, just under a half of landlords - 45% - are extremely confident about this year, whilst only 29% are pessimistic.
The data comes from an online mortgage broker’s survey on the BTL market sent to 5,500 landlords; however it failed to disclose how many actually took part in the research.
Around 10% of respondents are making plans to leave the sector this year but a resounding 70% said they are not going to sell any of their rental properties.
Regarding buy to let mortgage rates, landlords seem to be relatively comfortable about the future although many commentators have noted a rise in rates over the past few months.
Just fewer than 54% stated in the survey that BTL mortgage rates were unlikely to rise any more but 38% thought they would increase; nearly 9% expected to see a drop in rates in spite of rumours of a potential negative Bank of England base rate.
Angus Stewart of the online brokerage, said: “In the case of landlords Coronavirus and the resulting economic uncertainty came on the back of a raft of regulatory and tax changes over recent years that have left the sector battered and which saw smaller landlords in their thousands throw in the towel.
“However, our survey shows the buy to let sector as a whole is a resilient one. Those landlords that have survived may well be stronger and our survey shows them as giving buy to let the thumbs up as we move into 2021. We see the year as being one of two halves.
“There is clearly continued turbulence forecast for the first half of the year as Coronavirus and Brexit play out. But the fundamentals of the private rented sector remain and now more than ever an increased number of people need a good quality roof over their heads, and this will create plenty of opportunity for landlords to do well.”
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