Confidence returns amongst professional landlords

Landlord Expert
By Landlord Expert January 7, 2010 14:30

The survey aims to give a snapshot of landlords' views on the current state of the buy-to-let market along with their thoughts on the future of the sector, their intentions for their portfolios and how they are dealing with any potential difficulties.

Of those who responded the majority (81 per cent) were positive about the future of buy-to-let with many suggesting the sector has now ditched its former get-rich quick image and is once again a market of professional landlords.

When asked whether they planned to buy or sell some of their investment properties in the near future, more than a third (38 per cent) said they intended to buy, 13 per cent said they will sell, while the majority, 53 per cent, are content to sit tight with the properties they currently have.

The survey revealed most respondents (59 per cent) chose to manage their properties themselves and considered their role as buy-to-let landlord as a profession rather than a hobby.

Meanwhile a third (34 per cent) preferred to use the services of a lettings agent to manage their properties.

Elsewhere in the survey, 71 per cent of landlords said the rental money they gained from their buy-to-let properties was sufficient to cover the mortgage payments, management and maintenance fees, while 15 per cent said it was only enough to cover the mortgage.

Only 6.1 per cent said their rental income was insufficient to cover their outgoings.

In addition, the survey found more than half (55 per cent) said they had not experienced any rental voids in the last 12 months.

However, 28 per cent have had to deal with a rental void in the last six months, and 17 per cent in the last year.

Bob Young, managing director of CHL Mortgages, said: "Our first quarterly survey of CHL landlord customers seems to show growing confidence in the buy-to-let sector and an overwhelming feeling that the market pain we have all felt over the last couple of years is starting to subside.

"In essence, the survey reveals that buy-to-let has gone back to its roots and is now a sector dominated again by professional landlords rather than the type of borrower we saw in the 'boom years' which were motivated by short-term ambitions as they attempted to make money quickly from property."

 

Landlord Expert
By Landlord Expert January 7, 2010 14:30

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