A new survey of UK buy-to-let landlords has revealed growing optimism about the future performance of their property investments, with 60% of landlords confident about both capital growth and rental returns over the coming months.
Landlords positive despite economic hurdles
The research, conducted by Butterfield Mortgages Limited (BML), a prime London mortgage provider, surveyed 501 UK landlords with buy-to-let (BTL) mortgages. The results suggest that the majority of landlords are maintaining or planning to expand their portfolios within the next year, reflecting confidence in the resilience of the UK rental market.
In particular, 57% of landlords reported that the Bank of England’s recent interest rate cut in August had a positive impact on their investments. Moreover, 58% believe that, despite broader economic challenges, BTL investments remain highly attractive.
Landlords looking to grow portfolios
When asked about their plans for the next 12 months, nearly two-thirds of landlords revealed intentions to either expand (38%) or maintain (49%) their current property portfolios. Only 10% of respondents indicated plans to reduce the number of properties they own, reflecting a strong sense of stability within the sector.
The research also addressed concerns around the potential exit of landlords from the BTL market. More than half (56%) of those surveyed believe that predictions of a large-scale exodus have been overblown, indicating a greater level of confidence in the market than previously thought.
Strong rental income and capital growth key to optimism
Alpa Bhakta, CEO of Butterfield Mortgages Limited, commented on the findings: “It cannot be denied that the buy-to-let sector has faced considerable challenges in recent years, but our findings show that landlords remain eager to invest in the UK rental market. The sector’s resilience can be attributed to two key factors: strong rental income and steady capital growth. Encouragingly, both of these indicators have shown positive momentum in recent months, suggesting that landlords’ appetite for investment will continue to grow as economic conditions improve.”
Caution ahead of the Autumn Budget
Despite the positive outlook, Bhakta also highlighted potential challenges on the horizon: “Brokers and lenders must be mindful of the challenges that lie ahead, particularly as we approach the Autumn Budget. Additional taxation and regulation are likely to be introduced, so landlords will need ongoing support and tailored guidance to navigate any new hurdles that arise.”
Bhakta emphasised the importance of collaboration between brokers and lenders in providing flexible and bespoke solutions to help landlords succeed: “Flexibility and bespoke solutions will be critical to the sector’s success going forward, so brokers and lenders need to collaborate to ensure borrowers have access to the financial products they need to thrive in the latter half of this year.”
