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  • Writer's pictureThe Cedar Crest Team

Rise in Landlord Confidence

Consumer-driven shifts to the property market are reasons to be positive

NEW HOPE FOR BUY-TO-LET OWNERS


The proportion of landlords feeling optimistic about different aspects of letting is at the highest level for five years, which is an indication of the strength of the sector, according to new research[1].

Landlords were asked to rate their expectations for rental yields, their own lettings business, capital gains, the private rental sector and the UK financial market.

 

INVESTOR OPTIMISM


The proportion who deemed the outlook for these measures to be either ‘good’ or ‘very good’ exceeded levels seen in Q3 2016, the survey taken just before the Brexit vote, with investor optimism consistently rising following the record low levels seen in Q1 2020.


The survey of over 600 landlords highlighted a link between optimism and portfolio size, with landlords managing larger portfolios tending to be more upbeat about the prospects for their own lettings business – 56% of landlords with eleven or more properties felt ‘good’ or ‘very good’, falling to 46% among those with between one and ten properties.

 

LETTINGS BUSINESS


The research also found a correlation between confidence and property purchase behaviour.


A positive outlook was noted among almost twothirds (63%) of those who have recently purchased a property, compared to just under half (48%) among all respondents.

In addition, over three-quarters (78%) of landlords who plan to expand their lettings business in the next year are optimistic, whereas confidence was seen in a lower proportion, 26%, among those looking to divest.

 

RENTAL YIELDS


The data outlined not only increased general confidence levels but a greater willingness from landlords to purchase property, potentially remortgaging in order to fund this, and the greater likelihood they will utilise limited company vehicles.


This may be explained by landlord confidence in rental yields and their own lettings business improving, as well as the fact that interest rates for alternative savings investments are almost zero.


And there’s the existential threat of a return to inflation after the crisis is over.

 

>> NEED A MORTGAGE TO HELP FUND YOUR PROPERTY

INVESTMENT? <<


If you are looking to buy a property to rent out or add another investment to your property portfolio, there are lots of things to consider.


Let us help you make a success of your investment, whether you’re a first-time buyer or building up your property investment portfolio.


For more information, contact Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017,

HK T: +852 6645 4462 – email info@cedar-crest.co.uk


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