Only 10% of Landlords Are Downsizing Their Buy-to-Let Portfolios as Confidence in Market is High

Butterfield Mortgages Limited (BML), the London-based property mortgage provider, has published new research revealing that 60 per cent of buy-to-let (BTL) landlords are optimistic about the future of their portfolios over the next 12 months. 

BML commissioned an independent survey of 501 UK landlords with BTL mortgages and found that both in terms of capital growth and rental returns, landlords were looking forward to the future. Interestingly, 57 per cent of respondents revealed that the latest interest rate cut had a positive impact on their investments. Furthermore, 58 per cent said that BTL investments remain highlight attractive, even in the current climate.

When asked about their investment strategies in the next 12 months, 38 per cent of landlords say they will increase the size of their portfolios. Meanwhile, 49 per cent state they will maintain their current sizes instead. Going against the emerging trend, a small minority (10 per cent) say they will reduce the number of properties they own.

Confidence is needed but so is caution

Alpa Bhakta, CEO of Butterfield Mortgages Limited

Alpa Bhakta, CEO of Butterfield Mortgages Limited said: “It cannot be denied that the buy-to-let (BTL) sector has faced considerable challenges in recent years, but our findings show that landlords remain eager to invest in the UK rental market.

“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.

“That said, brokers and lenders must be mindful of the challenges that lie ahead, particularly 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. Flexibility and bespoke solutions will be critical to the sector’s success going forward, so brokers and lenders need to collaborate to ensure borrowers have access to the financial products they need to thrive in the latter half of this year.”

BML’s research also found that over half (56 per cent) of landlords believe that the predicted exodus of landlords from the BTL market has been greatly exaggerated.

The post Only 10% of Landlords Are Downsizing Their Buy-to-Let Portfolios as Confidence in Market is High appeared first on The Fintech Times.

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