Were buy to let landlords confident at expanding their portfolio with more buy to let mortgages
Landlords are confident about future market conditions and are keen to expand their property portfolios, according to 2006 research.
Indeed, the number of buy-to-let landlords buying rental properties (25%) is more than double the number considering selling them. The percentage of those who stated they were thinking of selling was down by 3% from 1% (2005 figures).
These findings signal a recovery in the sector and are a clear sign that buy-to-let investors are returning to the purchase market. This trend is also reflected by the fact that landlords are expecting to grow their portfolio by 17% over the coming 12 months.
But landlords' confidence could be based on bogus information based on our research that shows that letting agents in some regions of the UK are overstating rental returns on investment properties by up to 25%.
Posing first as a tenant, and then as a potential property investor, researchers enquired as to how much two-bedroom flats in specific developments could be rented for. Whilst London (25%) and Birmingham (13%) boasted the most inflated prices to potential investors, other areas of the country showed a different trend. Letting agents in Manchester and Liverpool massively under-quoted potential
rental returns (-25% and -l% respectively).
Landlords also need to take heed of new HMO (Houses in Multiple-Occupation) regulations, a worrying 46% of property investors are not even aware of the new rules.
Properties with unrelated tenants that do not form a single household will now fall under 11MO regulations, meaning landlords will require a license from their local housing authority.
Of those landlords who are aware of the rules, just 40% are confident they are meeting the requirements.
