Landlords remain optimistic about the short-term future of residential buy-to-let despite the uncertainties facing the sector – and the country.
Research by Cambridge & Counties Bank revealed that while many remained cautious over Brexit and a challenging financial climate, around two-thirds of UK landlords view the outlook for the next three years favourably.
The latest study found more than one in 10 are “very” optimistic in terms of investment growth and yields. A fifth of landlords surveyed said they are using the unstable market to their advantage, with 19% saying they are planning to grow their portfolios in the near future. A further 11% want to double their portfolio over the next three years.
Despite the optimism, the research found nearly a fifth (19%) of landlords are looking to sell up, with 405 of landlords blaming their decision on the uncertainty over Brexit. The UK’s future relationship with Europe looms over landlord concerns and is seen as a bigger risk than rising interest rates (32%), with both a lack of confidence in the stability of lenders and rising levels of tax cited by 32%.
Outside of the BTL sector, optimism was riding high around growth in student accommodation, with 16% being “very” optimistic”.
Commercial letting was also viewed optimistically by 41% of respondents.
Landlords are also looking to invest in their current properties with one in 10 saying they intended to spend on average £10,000 on sourcing up their current properties.
One in 10 (11%) of respondents said they would spend more than £20,000, with 4% saying they would invest more than £50,000 in their estate.
Simon Lindley, Chief Commercial Director, Cambridge & Counties Bank, said: “In spite of Brexit worries, it is great to see that the overall outlook for the commercial property sector is one of optimism. At Cambridge & Counties Bank, we remain very much focused on supporting our clients with our comprehensive product suite and in doing so maintain our market leading level of customer satisfaction.”