Recent research from Landlord Mortgages, the UKs largest specialist buy-to-let broker, revealed almost nine in 10 respondents are intending to expand their portfolio in 2007.
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Of those, 55 per cent are intending to invest in one further property, 39 per cent are buying a further two to four and 6 per cent are expecting to purchase six or more properties this year. Only 10 per cent of investors are choosing not to expand their portfolio in 2007.
Another vote of confidence in the buy-to-let market revealed by the research is that only 5 per cent of landlords say they are intending to sell any of their investments in 2007 which is in stark contrast to pundits who have forecasted landlords abandoning the market in droves.
The remaining landlords are planning to keep their current portfolio.
Landlords are also positive about the future of the property market as a whole, with 70 per cent expecting house prices to rise, and a further 20 per cent predicting there will be a significant rise in prices throughout the year.
Only 10 per cent of landlords believe we will see a drop in the property market.
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The majority of landlords said they decided to create a property portfolio to help subsidize their retirement and nearly a third cited taking advantage of property price increases as their reason for entering into the buy-to-let market.
Other respondents said they wanted to build up a portfolio as a means to provide stability for their childrens future, showing that landlords are still looking into buy-to-let as a long-term investment.
Lee Grandin, managing director of Landlord Mortgages, said: It is great to see that many buy-to-let investors are feeling positive about the property market and are seeing 2007 as the ideal time to expand their portfolios. With only 5 per cent of respondents planning to sell property this year it shows landlords are still looking upon property as a long-term investment, with many planning to use the capital gains on their investment to add to their pension pot or to secure a property for their childrens future.
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With recent interest rate rises and further increases imminent, many pundits are predicting a cooling effect on the housing market. However, we are seeing a huge increase in semi-professional landlords, many of whom have accumulated a substantial portfolio. These landlords carry out thorough research before investing and ensure rents are high enough to cover any market fluctuations. Such landlords have every right to be confident about their property portfolio.
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