Majority of landlords ‘confident’ despite prospect of mortgage interest rate rises
A new trend report reveals that 51% of well-established landlords remain optimistic despite the potential for mortgage interest rate rises.
The report, from Paragon, also revealed that 30% of landlords considered demand for rental properties to be strong, reinforcing the need to keep up supply.
The buy-to-let sector showed signs of stability, another positive trend, with average void periods remaining around the 2.7 weeks mark.
Though tenant demand continues, an increased number of landlords – 23% – say they may sell some of their property portfolio in 2018.
However, fewer landlords are borrowing, and some landlords are finding it harder to obtain mortgages due to the stricter lending laws introduced in September 2017.
Managing Director for Mortgages at Paragon, John Heron, said: “In response to fiscal changes over the last two years, landlords are clearly less willing to take higher loan to value mortgages and borrow more, whilst regulatory changes, though welcomed by lenders, have constrained the market in its ability to offer higher LTV mortgages”.
“Despite much noise to the contrary, and whilst some landlords have responded to a turbulent market by selling property, we’ve seen no material evidence of a mass sell-off by landlords. What we continue to see is strong performance of property portfolios, with a long term upward trend in values and a stable outlook in portfolio size and returns”, Heron continued.
Though landlords continue to negotiate many regulatory and tax changes, this report paints a more positive picture of how landlords are negotiating those changes.
Get more information by clicking the link below: