89% of investors are either looking to maintain their current portfolio or expand it over the next six months. In addition, 31% say rent levels have increased over the last six months and 94% expect rent levels to remain the same or grow over the subsequent six months.
The survey provides an authoritative insight into the sector on a variety of issues including market confidence, void periods, rent levels, regional splits and future portfolio plans.
Key findings for Q2 2005 include:
- 89% of investors are looking to maintain their portfolio or expand it over the next six months (similar to the previous quarter - 90%).
- Over the past six months rent levels have been generally stable with 31% saying rent levels have increased (up from 26% the previous quarter). 59% said rent levels have stayed the same. Looking ahead to the next six months, 94% expect rent levels to remain the same or grow.
- Rental void periods remain low. Over the past six months, 71% of respondents have experienced no void periods and 89% expect void periods to be the same or decrease over the next six months (the same figure as last quarter).
- The South East, South West and North West remain fashionable areas for property investment. Overseas locations are also increasing in popularity.
Andrew Moss, product development manager for Mortgage Express, says: “Our Q2 survey reveals that landlords’ confidence in the buy-to-let market remains resolute. Over a third are planning to further enhance their portfolios over the next six months and most believe that rent levels will stay the same or increase over the coming months. This confidence reflects trends in the wider market, where many are not simply delaying house purchase because of current high price levels but are preferring the flexibility of choice offered by today’s active private rental market.”
Areas of attraction
The South remains by far the most popular area for buy-to-lets (64%), followed by Wales and the Midlands (21%) and Scotland and the North (19%). Looking ahead to where investors are planning to buy, 22% favour the South East, 13% the South West and 9% the North West. Overseas locations are also increasing in popularity as increasing numbers look to buy rental property abroad.
Moss concludes: “We think the future of the buy-to-let sector is bright. What has come through strongly in our research is that many landlords are knowledgeable and experienced, having been in the market an average of seven years, so know to expect the inevitable peaks and troughs.
“Far from being concerned about a more muted property market though, the majority of investors remain confident about the market’s potential and the prospects of continuing low void periods and stable and increasing rent levels. The results of this survey, therefore, illustrates that the outlook for buy-to-let remains extremely positive.”
