Bradford and Bingley press release - 26/07/2005
Mortgage Express’ Q2 Buy-to-Let Survey shows confidence remains strong
89% of investors are either looking to maintain their current portfolio
or expand it over the next six months
31% say rent levels have increased over the last six months and 94%
expect rent levels to remain the same or increase over the following six
months.
The quarterly Buy-to-Let Confidence Survey from Mortgage Express, the
specialist lending arm of Bradford & Bingley, shows confidence in the
market remains strong. 89% of investors are either looking to maintain
their current portfolio or expand it over the next six months. In
addition, 31% say rent levels have increased over the last six months and
94% expect rent levels to remain the same or grow over the subsequent six
months.
The survey by the UK’s leading buy-to-let lender, provides an
authoritative insight into the sector on a variety of issues including
market confidence, void periods, rent levels, regional splits and future
portfolio plans.
Key findings for Q2 2005 include:
89% of investors are looking to maintain their portfolio or expand it
over the next six months (similar to the previous quarter - 90%).
Over the past six months rent levels have been generally stable with 31%
saying rent levels have increased (up from 26% the previous quarter). 59%
said rent levels have stayed the same. Looking ahead to the next six
months, 94% expect rent levels to remain the same or grow.
Rental void periods remain low. Over the past six months, 71% of
respondents have experienced no void periods and 89% expect void periods
to be the same or decrease over the next six months (the same figure as
last quarter).
The South East, South West and North West remain fashionable areas for
property investment. Overseas locations are also increasing in
popularity.
Andrew Moss, product development manager for Mortgage Express, says: “Our
Q2 survey reveals that landlords’ confidence in the buy-to-let market
remains resolute. Over a third are planning to further enhance their
portfolios over the next six months and most believe that rent levels
will stay the same or increase over the coming months. This confidence
reflects trends in the wider market, where many are not simply delaying
house purchase because of current high price levels but are preferring
the flexibility of choice offered by today’s active private rental
market.”
Areas of attraction
The South remains by far the most popular area for buy-to-lets (64%),
followed by Wales and the Midlands (21%) and Scotland and the North
(19%). Looking ahead to where investors are planning to buy, 22% favour
the South East, 13% the South West and 9% the North West. Overseas
locations are also increasing in popularity as increasing numbers look to
buy rental property abroad
Moss concludes: “We think the future of the buy-to-let sector is bright.
What has come through strongly in our research is that many landlords are
knowledgeable and experienced, having been in the market an average of
seven years, so know to expect the inevitable peaks and troughs.
“Far from being concerned about a more muted property market though, the
majority of investors remain confident about the market's potential and
the prospects of continuing low void periods and stable and increasing
rent levels. The results of this survey, therefore, illustrates that the
outlook for buy-to-let remains extremely positive.”
Mortgage Express lends through mortgage intermediaries, so borrowers
wanting
further information on its product range should
click here
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