Three in five, or 60%, of the respondents in the survey are confident about the future, both in terms of capital growth and rental returns
Buy-to-let landlords in the UK are largely optimistic about the future of their property investments, with many planning to maintain or expand their portfolios over the next year, finds a new research from Butterfield Mortgages.
Three in five, or 60%, of the respondents in the survey commissioned by the prime London mortgage provider are confident about the future, both in terms of capital growth and rental returns.
More than half of the landlords surveyed (57%) reported that recent interest rate cuts have had a positive impact on their investments. Additionally, 58% believe that buy-to-let investments remain attractive in the current market environment.
When asked about their plans for the next 12 months, 38% of landlords said they intend to expand their portfolios, while 49% plan to maintain their current holdings. Only 10% said they expect to reduce the number of properties they own.
The research also found that 56% of landlords think concerns about a mass exodus from the buy-to-let market have been overstated.
It cannot be denied that the BTL sector has faced considerable challenges in recent years, but our findings show that landlords remain eager to invest in the UK rental market, said Alpa Bhakta, chief of Butterfield Mortgages.
The sector’s resilience can be attributed to two key factors: strong rental income and steady capital growth. Encouragingly, both of these indicators have shown positive momentum in recent months, suggesting that landlords’ appetite for investment will continue to grow as economic conditions improve, she said.
That said, brokers and lenders must be mindful of the challenges that lie ahead, especially as we approach the Autumn Budget. Additional taxation and regulation are likely to be introduced, so landlords will need ongoing support and tailored guidance to navigate any new hurdles that arise, she said.
