Landlords 'are investing in the future'

Many British landlords see their properties as an investment in the future and a fund for retirement, a new study suggests.

Data collected by Birmingham Midshires (BM) indicates that 36 per cent of buy-to-let investors are interested in the additional income for their future security.

Meanwhile, less than five per cent said that the additional short-term income was their main reason for investing in property.

Nearly half of respondents said they had owned investment properties for between one and five years, the figures reveal.

"The buy-to-let sector has fast become a solid and established market in recent years and these figures show that people investing are taking a long-term approach," said Iain Williamson, head of key accounts at BM Solutions, which provides buy-to-let mortgages.

"This is great news for brokers. Given the confidence that landlords have in the future market, there's a really good opportunity to apply their expert market knowledge to the decisions of these savvy investors."

The study also shows that both younger and older landlords are using property as an investment; 32 per cent of investors were revealed to be between 55 and 64, while 15 per cent were under 34.

In related news, Brighton was named as the most popular location for buy-to-let investment in a recent survey.

2007 'could be the year of the landlord'

The growth of the buy-to-let market could make 2007 "the year of the landlord", according to GE Home Lending.

Problems with the affordability of housing for first-time buyers has helped the market grow, said Gerry Bell, head of mortgage marketing at GE Money Home Lending.

To further demonstrate the strength of the sector, 75 per cent of brokers told the company that buy-to-let was a key product for them this year.

The release of this data coincides with the lender's launch of new two and five-year fixed-rate deals for buy-to-let investors.

Mr Bell commented: "Following the successful launch of our first buy-to-let range in November we are now beginning to add more products based upon key trends in the marketplace.

"We believe these additions to the range offer a compelling mix of price, term and flexibility for buy-to-let customers."

The range will be available from June 15th and offers flexible product options, as well as features such as initial rate rental calculation and 100 per cent rental income up to 85 per cent LTV.

Mr Bell added that it was "crucial" that products for buy-to-let customers fuel the demand from the booming market.

GE Money Home Lending offers a range of specialist mortgages and loans.

Landlords 'want long-term investment'

Most landlords in the UK are looking for long-term investment rather than quick money, according to new research.

A survey of almost 5,000 buy-to-let investors by Bradford & Bingley indicated that half of respondents have been investing in the market for more than five years, while less than ten per cent have been in the game for under 12 months.

The study also revealed that the vast majority of landlords anticipate that rent levels in their portfolios will rise or remain steady over the next six months, at 34 per cent and 62 per cent respectively.

These figures demonstrate a seven per cent increase on last year's optimism regarding rent.

Andy Wiggans, director of mortgages at Bradford & Bingley, said: "Buy-to-let remains a popular market that attracts a wide spectrum of people from all walks of life looking for long-term capital growth or a means of supplementing their pension."

As described by the company's data, the typical buy-to-let investor is male and between the ages of 36 and 45.

Some 63 per cent own between one and five properties in the buy-to-let sector, while 71 per cent have full-time employment or are self-employed in addition to being a landlord.

Services offered by Bradford & Bingley include mortgage, insurance and savings products.

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