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Buy to let landlords in it for the long-term
UK landlords are still committed to buy to let in the long-term despite recent market turbulence, according to independent research commissioned by The Money Centre.
In a survey of almost 500 landlords, more than half said they expect to stay involved in property letting for more than 10 years:
26 percent said they expect to stay involved in property letting indefinitely;
5 percent for over 20 years;
22 percent for 11-20 years;
19 percent for 6-10 years.
Only 17 percent said less than 5 years and 11 percent said they were unsure.
This was echoed across the board of landlords, from those with only one or two properties to those with a portfolio of more than 20, indicating that it is not just the professional landlords who have faith in the market.
Additionally, only 13 percent of landlords questioned said they were likely to sell any letting property during the next quarter.
Lynsey Sweales, marketing and PR director of The Money Centre said: “We welcome the news that the vast majority of landlords don’t seem to be making snap decisions and selling properties in panic over the recent market instability.
“There are many different reasons why people enter the buy to let market, but in order to get the most out of their investment we always recommend that landlords take a mid- to long-term approach.
“Meticulous research and planning, a solid strategy and clear end goal are key to making the most from property investments. There will be peaks and troughs in the property market but the right approach and sufficient cash reserves will see investors through bleaker spells.
“2008 is likely to offer opportunities for investors who can capitalise on the uncertainty in the market and continued rental demand. Buy to let has become more and more accessible over recent years and we expect to continue to see landlords build on their existing property portfolios as well as see people join the buy to let market for the first time, whether that be in order to get on the property ladder, to supplement their income or to secure their financial future.”
The research was undertaken by independent research agency BDRC on behalf of a syndicate of buy-to-let mortgage lenders and brokers. 493 online surveys were conducted among residential property investors between 5th and 26th December 2007.
