This is compared to 86 per cent at the same time last year.
The survey of nearly 5,000 landlords by Mortgage Express found confidence to be highest among landlords with the largest portfolios. A total of 77% of those with 25 or more properties said they were planning to increase their property portfolio over the next six months, compared to 38% of those with one or two properties. There was also increased landlord confidence in regard to rent levels, with 96% of landlords expecting rent levels across their portfolios to either increase (34%) or stay the same (62%) over the next six months. This was an increase of 7% on the same time last year.
Choosing a buy-to-let mortgage deal
More than three-quarters (77%) of landlords said interest rate was the factor that most influenced their choice of mortgage deal. Other influences cited included the level of fees (31%), the maximum borrowing available (23%) and broker recommendation (21%). Landlords who identified broker recommendation as an influence were most likely to have been investing in property for less than two years (27%), own one or two buy-to-let properties (25%) and be 56 years of age or above (56%). Just 8% of landlords said their choice of mortgage deal was most influenced by their relationship with the lender.
Profile of the typical buy-to-let investor
- The typical buy-to-let investor is male (64%) and between 36 and 45 years of age (33%)
- The average landlord (63%) has between one and five buy-to-let properties
- Half of landlords (50%) have been investing in property for over five years
- Only 10% of buy-to-let investors are self-employed as a full-time professional landlord
- The most popular investment property is still the terraced house, with 58% of landlords having at least one terraced house in their property portfolio, up from 52% last year
According to the survey, the South-East is the most popular area for buy-to-let investment, with 29% of landlords owning an investment property in the region. Brighton is revealed as the jewel in the South-East’s crown, its popularity among buy-to-let investors being largely driven by its vibrancy, large student population and proximity to London. Over a fifth of landlords (23%) owned buy-to-let properties in London, making it the second most popular part of the UK in which to invest.
Across the UK, landlords reported a healthy mix of social groups among their tenants, with couples accounting for 45% of tenants, single people for 36% and students 12%.
Andy Wiggans, director of mortgages at Mortgage Express, said: “Despite recent reports of a slowdown in the buy-to-let sector, our biggest ever survey of those at the heart of the market shows it remains strong. Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns. Buy-to-let remains a popular market that attracts a wide spectrum of people from all walks of life looking for long-term capital growth or a means of supplementing their pension."
