The reappearance of several major finance providers, coupled with high demand for rental properties, has encouraged landlords to increase their buy-to-let property portfolios in recent months.
The survey showed that a buy-to-let interest rate rise of 2% would have a negative impact on 89% of landlords, with 53% concluding that the effect would be significant. A further 8% could be forced to re-evaluate their future as a landlord, with 6% having to reduce their portfolios or leave the private-rented sector completely.
An interest rate rise of just 1% on this type of mortgage would have a negative impact on 80% of landlords, with 29% stating that such an increase would have a significant impact on their lettings business.
Almost three-quarters of landlords surveyed (73%) have at least one mortgage, and of those 47% have at least five buy-to let mortgages held against their property portfolio.
Just under half of landlords (49%) strongly agree that the market would further benefit from more buy-to-let lenders and greater competition.
David Salusbury, NLA Chairman, said: "These statistics show how important it is for a landlord expanding their portfolio to construct a sound long-term business plan when considering buy-to-let properties.
"The NLA believes that such properties can be a worthwhile investment and can help ease the current housing crisis by providing a source of much-needed housing, but landlords should ensure that they plan for the future and are mindful of any potential increases in buy-to-let interest rates."
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