Almost half of landlords optimistic about the future of the BTL market
Almost half (45%) of landlords are optimistic about the buy-to-let market in 2021, according to Property Master.
In contrast, 29% of those surveyed were pessimistic about the BTL market in the coming year.
Landlords cited raising taxes to pay for the current crisis as the primary reason they were pessimistic.
The data also showed that 10% of landlords plan to exit the BTL market in 2021, while 70% detailed that they will not be selling any properties this year.
An estimated 43% of landlords intend to purchase more property in 2021, with the same percentile outlining that they intend to retain their current number.
In addition, a further 13% revealed that they were undecided.
Furthermore, 54% of landlords surveyed thought that BTL mortgage rates would stay the same, as opposed to almost 38% who thought they would increase further.
The data also outlined that 9% of respondents thought rates would decrease despite the rumours about a possible negative Bank of England base rate.
Angus Stewart, chief executive of Property Master, said: “For landlords, as for many other sectors, 2020 is a year that brought plenty of challenges.
“But in the case of landlords coronavirus and the resulting economic uncertainty came on the back of a raft of regulatory and tax changes over recent years that have left the sector battered and which saw smaller landlords in their thousands throw in the towel.
“However, our survey shows the buy-to-let sector as a whole is a resilient one.
“Those landlords that have survived may well be stronger and our survey shows them as giving buy-to-let the thumbs up as we move into 2021.
There is clearly continued turbulence forecast for the first half of the year as coronavirus and Brexit play out.
“But the fundamentals of the private rented sector remain and now more than ever an increased number of people need a good quality roof over their heads, and this will create plenty of opportunity for landlords to do well.”
“A competitive and innovative buy-to-let mortgage market has proved to be a big plus for the private rented sector.
“Inevitably, the coronavirus has led to some caution amongst lenders especially around loan to value ratios, but we see this as easing as the year plays out.
“We are confident the mortgage market will continue to support the aspirations of British landlords to expand and build upon their property portfolios.”