BTL landlords remain optimistic despite challenges

BTL landlords remain optimistic despite challenges

0:02 AM, 16th October 2024, About 2 months ago

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The majority of buy to let landlords remain optimistic about the future performance of their property investments, despite recent challenges, a survey reveals.

The research from Butterfield Mortgages shows that 60% of UK landlords are optimistic about both capital growth and rental returns.

More than half (57%) of the 501 respondents said that the interest rate cut has had a positive impact on their investments.

A similar number (58%) believe that BTL investments remain highly attractive in the current climate.

BTL sector has faced challenges

The firm’s chief executive, Alpa Bhakta, said: “It cannot be denied that the buy to let sector has faced considerable challenges in recent years, but our findings show that landlords remain eager to invest in the UK rental market.

“The sector’s resilience can be attributed to two key factors: strong rental income and steady capital growth.

“Encouragingly, both of these indicators have shown positive momentum in recent months, suggesting that landlords’ appetite for investment will continue to grow as economic conditions improve.”

She added: “That said, brokers and lenders must be mindful of the challenges that lie ahead, particularly as we approach the Autumn Budget.

“Additional taxation and regulation are likely to be introduced, so landlords will need ongoing support and tailored guidance to navigate any new hurdles that arise.”

Landlords are wary about challenges

Despite the Bank of England’s August rate cut positively impacting their investments, landlords are wary about the potential challenges ahead, such as increased taxation and regulation.

When asked about their investment strategies in the next 12 months, most landlords say they will increase or maintain the size of their portfolios.

A small minority will reduce the number of properties they own.

Butterfield‘s research also found that more than half (56%) of landlords believe that the predicted exodus of landlords from the BTL market has been greatly exaggerated.


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