Buy to Let Property Investors Optimistic About Future

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Around two thirds of UK buy to let investors are optimistic about the future of the private rental sector, despite the challenges faced by landlords.

Furthermore, more than one in ten of these are ‘very’ optimistic when it comes to investment property growth and yields.

The findings come in the latest research by Cambridge & Counties Bank, which has highlighted that a significant number of landlords are using the current market volatility to grow their portfolios.

Due to the optimistic viewpoint held by landlords, nearly a fifth (19 per cent) are looking to grow their portfolios by a third and 11 per cent want to double it over the next three years. The research found that just 19 per cent of landlords are looking to sell.

While landlords are optimistic, Brexit remains the biggest uncertainty for property sector professionals with two fifths (40 per cent) of landlords conceding that it is top of their list of concerns.

Brexit is seen as a bigger risk than rising interest rates, a lack of confidence in the stability of lenders, and rising levels of tax, which were all cited by 32 per cent of landlords.

The student accommodation market was close behind the general private rental sector when it came to positivity, with a similar number (61 per cent) of landlords are equally optimistic about student accommodation in terms of growth, and 16 per cent ‘very’ optimistic.

Office buildings and commercial properties are viewed positively by two fifths (41 per cent) of those asked – though almost a third are not optimistic.

A significant number of landlords also say they will be refurbishing their buy to let and investment properties, with an average of £10,000 set to be spent. One in 10 (11 per cent) of respondents said they would spend more than £20,000, with 4 per cent forecasting they would invest more than £50,000 on their portfolio.

Chief Commercial Director of Cambridge & Counties Bank, Simon Lindley, said: ‘In spite of Brexit worries, it is great to see that the overall outlook for the commercial property sector is one of optimism.’

 

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