Landlords’ confidence in the UK’s financial markets has tripled over the last year, according to research from the National Landlords Association (NLA).
Just under a third (31 per cent) of landlords rate their expectations of the UK’s financial markets as ‘good’ or ‘very good’ in the coming months, a rise of 21 per cent (up from 10 per cent) from the same point last year.In addition, over a quarter (27 per cent) of landlords say they plan to acquire property over the next 12 months.However, landlords’ perceived buoyancy is tempered by the finding that moderate rises to interest rates would put pressure on their ability to meet mortgage repayments.
Just over a fifth (21 per cent) of landlords say keeping up mortgage payments would be difficult with interest rate rises of just two per cent. A third (35 per cent) would struggle to keep up payments with a rise of 2.5 per cent, and two fifths (41 per cent) with a rise of 3%.
The Bank of England last week outlined that interest rates will remain at the current low of 0.5%, with the first rate increases likely to happen in late 2015.
Carolyn Uphill, Chairman of the National Landlords Association (NLA), said:
“Landlord optimism around the UK’s financial recovery, coupled with the Bank of England’s announcement makes good reading for anyone considering buy-to-let investment. This is evidenced by the significant number of landlords who will be looking to add property to their portfolios over the coming months.
“However, it’s inevitable that interest rates will rise as the economy improves and we move out of recession and our findings show that moderate increases would leave many landlords stretched in meeting their mortgage repayments.
“Anyone thinking about buy-to-let investment should do so with a view to long-term sustainability, and vital to this is adopting a professional approach to your lettings business.“The NLA will be promoting how an astute business approach can help to maximise profits from letting out property in the coming months.
To find out more about the NLA’s Professional Practice for Profit campaign, visit www.landlords.org.uk/professionalpractice”. – See more at: http://www.landlords.org.uk/news-campaigns/news/landlords-confident-uks-financial-recovery#sthash.UgDN7rg7.dpuf
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