Landlord confidence up in current climate
Landlord confidence in the buy-to-let market has been buoyed by strong tenant demand and good purchase prices, according to the most recent survey carried out by LSL Property Services. As the owner of UK's largest lettings agent network, it was able to pool its members to discover that nearly half of them (48 per cent) believe that now is a great time to invest in property. Four-fifths of landlords questioned (82 per cent) think now is a good time to buy rental property because of "attractive property prices", and another 53 per cent stated that it was strong tenant demand that attracted them to expand their portfolios and landlord insurance policies in the current climate. Additionally, four in ten landlords expect to increase their rents in the next 12 months, as just one in every hundred believe that rent reduction is the way forward for them. Those in a position to increase their rents believe they will do so by an average of 4.5 per cent. Speaking of the trends discovered in his company's report, director of LSL Property Services David Newnes said: "House prices are still subdued in many parts of the country and tenant demand is still growing. This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in buy-to-let as a long-term investment."