Almost the same proportion of landlords raised their rents last year
Around three in four residential buy-to-let landlords in the UK, or 74%, have expressed confidence in the property market’s performance over the next 12 months, new research from The Mortgage Lender (TML) has revealed.
Confidence levels varied among different landlord categories, with those who predominantly owned houses of multiple occupation (HMOs) exhibiting the highest confidence at 86%, followed by student accommodation landlords at 84%, and portfolio landlords with more than five properties at 82%.
When assessing the anticipated performance of their own rental properties in the coming year, 71% of landlords expressed confidence. Among this group, portfolio landlords with five or more properties were the most optimistic, with a confidence rate of 78%. Additionally, landlords with over five years of experience in the rental market were more likely to feel confident about their portfolios at 73%, compared to their less experienced counterparts at 69%.
The resilience in confidence is attributed, in part, to the sustained demand from tenants, with 73% of landlords reporting an increase in tenant demand over the last six months. Notably, 27% of landlords described this increase as significant.
As a response to heightened demand and broader economic trends, rental prices have also showed an upward trajectory. Approximately 73% of landlords indicated that they had raised their rental prices over the past 12 months, with an average increase of 34% among surveyed participants.
Of those who adjusted rents, 52% did so to offset rising operational costs, while 28% followed the trend set by other properties in the area where asking rents had increased.
“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,” commented Chris Kirby (pictured), head of key accounts and specialist distribution at The Mortgage Lender.
“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.”
Read more: Get to know The Mortgage Lender for intermediaries
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