Nearly three quarters (74%) of residential BTL landlords feel confident about the performance of the property market over the next 12 months, with 27% feeling very confident, according to research from The Mortgage Lender (TML).
Nearly three quarters (74%) of residential BTL landlords feel confident about the performance of the property market over the next 12 months, with 27% feeling very confident, according to research from The Mortgage Lender (TML).
Confidence in the future of the property market peaked for those landlords that predominantly owned homes of multiple occupancy (HMOs) at 86%, student accommodation landlords (84%) and portfolio landlords with more than five properties (82%).
When it came to the performance of their own rental properties over the next year, 71% of landlords felt confident, with portfolio landlords (those with five or more properties) feeling the most confident at 78%.
Those more seasoned landlords that have been renting out properties for over five years were more likely to feel confident about their rental property portfolios over the next year, compared to those with less experience (73% vs 69%), possibly due to the fact that they have weathered a number of economic cycles, said TML.
According to TML, tenant demand has remained buoyant, helping to maintain confidence — 73% of landlords said they’d seen demand from tenants increase over the last six months, with 27% saying they’d seen a significant increase.
Additionally, 73% of landlords reported that they had increased their rental prices over the last year, with the average going up by 34% among those surveyed, while 52% said they had increased rents to keep up with the increase in their own rising costs — 28% were following the lead of other properties in the area where asking rents had increased.
Chris Kirby, head of key accounts and specialist distribution at TML, commented: “Given the pivotal role that the BTL 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."
