Around three-quarters, 74%, of landlords think that the buy-to-let market needs greater innovation, while 89% also agree that the sector would benefit from added lenders or more competition, according to the National Landlords Association (NLA).1
The NLA’s research found that many landlords are disappointed with the present choice of buy-to-let products in the market; however, they also discovered that property purchases are rising. One in ten landlords have added properties to their portfolio in the past three months, and one in five are looking to buy more in the next 12 months.1
Additionally, over half of landlords studied do not think that access to buy-to-let mortgages is becoming easier, with three in five thinking that their individual circumstances as landlords are not being considered by mortgage lenders.1
David Salusbury, Chairman of the NLA, says: “Early signs of increasing property acquisition suggest that landlords are feeling more confident about future prospects of the buy-to-let market.
“However, while these findings are encouraging, some professional landlords with more extensive portfolios seem to be struggling to secure funds for additional expansion.
“The private rented sector is playing an increasingly important role in the provision of housing. Buy-to-let products must be sustainable, with consideration for the longer term, if the private rented sector is to rise to this challenge.”1
The NLA Landlord Optimism Index has become steady after a time of slow progression, following a huge drop four years ago.1 This suggests that landlords are more wary of their future prospects now.
Other discoveries in the NLA study are:
- 72% of landlords are borrowing on all or some of their rental properties.
- Landlords have an average of 7.7 buy-to-let loans on their portfolios.
- 20% of landlords have taken out a new loan or remortgaged in the past 12 months.