Submitted on Thursday 24th April 2008
Brokers confident about B2L
Despite the disappearance of many juicy B2L deals brokers remain confident concerning the future of professional buy- to-let landlords, according to new research from Buy to let specialist The Mortgage Works.
3,179 intermediaries were questioned in a recent survey and 44%, said they believed professional investors would continue to purchase properties in the coming months and would seek below market price opportunities. It was felt that the same professionals would hold onto their existing portfolios.
12% of intermediaries suggested investors would seek to sell some of their properties.
Expectations for rental demand was positive, with 40% expecting yields would rise this year, and 94% expecting tenant demand to be stable or rise. 62% believe new landlords would cease purchasing new properties in the coming year, and 58% suggesting fewer first-time investors would enter the buy to let sector in 2008.
In short the expectation is that professionals will hold their portfolios and seek opportunities whereas newer landlords will be more nervous and may panic.
