More landlords in the UK are getting confident about the prospects for the buy-to-let sector, meaning that this could be the time to buy rental properties.
In the past few years, most landlords have been steadily increasing their portfolios as the promise of returns strengthens, and it seems like this is a trend set to continue in the next few months.
A new report from Mortgages for Business has stated that some 60 per cent of those who are already operating in the private rented sector are looking to go further in the next six months by expanding their portfolios.
It’s a figure that suggests now really is the time to invest in the sector, with returns and demand expected to increase by those who already own buy-to-let properties.
Only three per cent of those landlords who own buy-to-let properties at the moment said that they intend to trim their portfolios in the next six months, a figure that has fallen from six per cent six months ago. Again, this shows just how high confidence is for the future of the sector at the current time.
Many savvy landlords are also looking to take advantage of remortgaging moving forward to ensure that they protect themselves for the time being.
Some 45 per cent said this is something they are going to be doing in the near future, and again, it shows that now might be the time to buy.
For potential investors who have been thinking about making the move into buy-to-let properties, now could be the perfect time to get their hands on an asset before interest rates rise, as expected, making it more expensive to do so.
“With buy to let mortgage rates at historic lows, this strategy may well prove prudent in protecting them against future interest rate rises,” said David Whittaker, managing director at Mortgages for Business.
The most popular type of mortgage for investors at the moment are five-year fixed rate products, which offer a longer period where they are free from the risk of rising rates. Some 34 per cent said they favour this kind of loan at the moment.