As a dedicated letting agent serving landlords, property investors, and those considering entering the buy-to-let market, it's essential to stay attuned to the latest trends and sentiments within the industry. Recent research from The Mortgage Lender (TML) has shed light on the optimism prevailing among residential buy-to-let landlords.
A noteworthy 74% of residential buy-to-let landlords express confidence in the performance of the property market for the upcoming year. This confidence is further underscored by the fact that 27% of them feel "very confident" about the market's prospects.
The study reveals that confidence in the future of the property market is at its zenith for specific categories of landlords. Notably, 86% of landlords predominantly owning Houses in Multiple Occupation (HMOs) harbour high levels of confidence. Similarly, those in the student accommodation sector exhibit an impressive 84% confidence level. Portfolio landlords with more than five properties also show robust optimism, with 82% expressing confidence.
When considering the performance of their own rental properties over the next 12 months, 71% of landlords express confidence. Portfolio landlords, particularly those with five or more properties, lead the way in confidence, with an impressive 78% feeling positive about their rental property portfolios.
Seasoned landlords with over five years of experience in the field tend to be more optimistic about their rental property portfolios over the next year, with 73% expressing confidence compared to 69% of those with less experience. This difference in sentiment may be attributed to the wealth of experience that seasoned landlords have gained, having navigated various economic cycles.
Tenant demand remains a driving force in maintaining high levels of landlord confidence. A significant 73% of landlords report an increase in tenant demand over the last six months, with 27% describing it as a substantial uptick.
In response to heightened demand and the broader economic climate, rental prices have seen an uptick. A substantial 73% of landlords have increased their rental prices over the past year, with the average increase being 34% among those surveyed. Among the reasons cited for raising rents, 52% did so to align with their own rising costs, while an additional 28% followed the trend of neighbouring properties that had also increased their asking rents.
The research from The Mortgage Lender paints a positive picture for landlords and property investors in the buy-to-let market. Confidence levels are high, driven by specialist sectors and strong tenant demand. The rising rental prices indicate a dynamic market that presents opportunities for those considering investment in the residential property sector.
Chris Kirby, head of key accounts and specialist distribution at TML, said: “Given the pivotal role that the buy-to-let industry plays in supporting the residential market and ensuring the maintenance of the much-needed supply of homes, it’s encouraging to see these levels of confidence. Despite the fact that many landlords are facing higher operating costs, and additional to the inflationary pressures that are impacting everyone, the continued supply of good quality, well maintained rental properties is a must. For landlords who are looking to expand their existing portfolio, or remortgage their properties, it’s important to seek broker advice to ensure they are accessing the best possible opportunities in the coming year.”
We have assisted many Finchley landlords connect with willing tenants, and we know where these groups are looking for rental accommodation. You can take the stress out of connecting with your ideal tenant by turning to a local lettings agent in Finchley.
If you want to make an informed decision in and around Finchley’s rental market, we are here for you. If you have any questions about the local market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
