Four out of ten landlords are still able to make sufficient profits from their properties to supplement their own income despite the hikes in interest rate, however a quarter are just managing to break even each month, with some now dealing with small monthly losses.
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For the short term, acquisition is on hold for many investors over the next twelve months until rates stabilise again. One in ten expect to sell some of their properties to generate enough capital to see them through, however this figure is down from a previous one in four evident of the confidence still felt amongst landlords.
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Recent rate rises may have put the squeeze on some investors, but the vast majority invest for long-term growth, said Lynsey Sweales, a spokesperson for The Money Centre. On average, investors expect to hold their investments for more than 18 years and most are confident the value of their portfolio will increase over the next twelve months.
Rental income is just one piece of the buy-to-let jugsaw. Rents tend to rise as interest rate increases put prospective homeowners off buying their own property, so short term profitability should soon return to the sector.
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