UK Buy-To-Let Landlord confidence has been boosted by continued strong tenant demand and falling property prices, according to the latest landlord survey conducted by LSL Property Services.
• 48% of UK BTL landlords believe that now is a good time to invest in property
• Less than 1% think it is now a good time to reduce their portfolios.
• 82% of landlords who think now is a good time to buy rental property cited attractive property prices
• 53% of UK landlords mentioned strong tenant demand.
The strength of tenant demand has been the major driving force behind recent UK rent rises, with rents at a record high of £725.00 (GBP) in England & Wales in July 2012.
In the past six months,
• 44% of UK landlords have seen a rise in tenant demand,
• 1% of UK landlords have observed a decrease in demand.
UK property investors are hoping that this growth will continue, with 64% of landlords anticipating a further increase in demand over the next twelve months.
40% of landlords expect to increase rents by an average of 4.5% in the coming 12 months, with just 1% expecting that they will be forced to reduce rents.
Sim Sekhon, spokesman for specialist landlord services provider, Legal 4 Landlords also commented on the latest LSL survey: “The findings show what UK Buy-to-Let landlords and property professionals have suspected for a while, that the UK PRS market is gaining strength and investors are able to get realistically good rental yields. Many landlords are taking advantage of the wealth of products and services designed to help them maximise profit and provide peace of mind for both tenant and landlord. Our Rent Guarantee Insurance and Tenant Referencing services have been sought by thousands of UK landlords over the last 12 months, as landlords look to avoid causing their tenants, or themselves, financial stress”.
David Newnes, director of LSL Property Services, commented: “House prices are still subdued in many parts of the country and tenant demand is still growing. This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in UK Buy-To-Let as a long-term investment. The majority of landlords expect tenant demand will increase in the future, and as long as lending to first-time buyers remains in the doldrums, and new house building remains subdued, we won’t see demand for rental accommodation tail off. In these conditions, while affordability may increasingly come into play as landlords set rents, they are far more likely to continue to rise than tumble in the coming 12 months.”
Read more about the specialist landlord and letting agent services offered by Legal 4 Landlords