A study by The Mortgage Lender (TML) reveals that 74% of residential buy-to-let landlords are optimistic about the property market in the next 12 months, with 27% expressing very high confidence.
Confidence peaks among landlords owning homes of multiple occupancy (HMOs) at 86%, student accommodation at 84%, and those with more than five properties at 82%.
Regarding their own rental properties, 71% of landlords feel positive about the next year, especially those with larger portfolios (5+ properties), who are the most confident at 78%. Landlords with over five years of experience show more confidence (73%) than their less experienced counterparts (69%).
Tenant demand remains strong, with 73% of landlords observing an increase over the past six months, and 27% noting a significant rise.
This demand has impacted rental prices, with 73% of landlords raising rents in the last year by an average of 34%.
Among them, 52% adjusted rents due to their own increasing costs, while 28% aligned with regional rent hikes.
Chris Kirby, head of key accounts & specialist distribution at The Mortgage Lender, said: “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.
“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.”
