Landlords are optimistic about their future prospects too. Over a quarter expect to remain within the property market indefinitely with most increasing rental values in a bid to offset the rate rises. However 32 per cent are planning on doing nothing to fend off creeping interest rates, possibly because they have already taken steps to combat them.
Alliance and Leicesters head of intermediary mortgages, Mehrdad Yousefi agrees, saying: Landlords love affair with the buy-to-let market is not without justification, and there is no doubt the sector will remain an important and stabilising part of the overall housing market.
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Buy-to-let investments are the main source of income for a quarter of landlords, and nearly half of the remainder say that whilst it might not be their primary source of income right now, it could definitely prove to become so in the future.
Over two-thirds of landlords make a regular profit when comparing their letting income with the outgoing costs, with one in five saying that these profits alone are significant enough to live on.
Yousefi cautions: While most landlords are riding high at present, the market may not be profitable at all times. While none of the landlords questioned reported large losses, just over one in twenty said they experienced small deficits.
Professional landlords will continue to experience good returns as long as there is demand for rented property, but they would do well to consider and plan for any possible less profitable periods.
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