New research from the bank, The Mortgage Lender (TML), has revealed that the majority of buy-to-let investors are “confident” in the next 12 months of the UK property market, as landlord sentiment remains high.
Almost three-quarters of landlords (74%) feel confident about the UK property market performance according to the latest research from the bank, The Mortgage Lender, with 27% feeling “very confident” in the market performance as landlord sentiment remains high across the UK.
The high levels of confidence peaked amongst landlords in the market who owned student-friendly properties with 84% of those feeling confident, and landlords with more than five properties in their portfolio, with 82% feeling confident.
"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." Chris Kirby, Head of Key Accounts & Specialist Distribution at The Mortgage Lender.‘‘’’
When considering the performance of their own rental properties, a staggering 71% of landlords felt confident towards the coming 12 months while 78% of landlords with five properties or higher also felt confident.
According to the research provided by TML, more “seasoned” landlords who have been in the UK rental market for five years or more are more likely to feel confident towards the coming year’s market performance compared to landlords who have less experience, likely since they have experienced the buoyancy of the UK property market first hand through various economic cycles, most recently the Covid-19 pandemic, with 73% of “seasoned” landlords feeling confident versus 69% of newer landlords.
As the buy-to-let market plays a vital part in the residential market within the UK property market, confidence amongst landlords has stayed high as tenant demand within the UK rental market has not faltered and continues to outstrip supply.
With 73% of landlords stating that they had experienced increased tenant demand over the last six months and a further 27% saying they had seen a “significant” increase”, it is no surprise to learn that 73% of landlords have reported increasing their rental prices over the last year – with the average rent increase growing by 34%.
"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.” Chris Kirby, Head of Key Accounts & Specialist Distribution at The Mortgage Lender.‘‘’’
At Beech Holdings we have experienced extremely high levels of tenant demand within our portfolio over the last 12 months, with our in-house lettings team having already let almost 50% of our portfolio for the next academic year and even secured long-term bookings that will see certain properties tenanted until September 2026.
To learn more about the landlord sentiment within the UK property market and how you can capitalise on the tenant demand within the market, get in touch with our expert consultants today or call directly at +44 (0) 161 791 4600.
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