Landlords predict doubling portfolios

This would raise portfolios from an average of 1.8 properties now, to 4.0 properties in five years’ time.

In contrast to reports about landlords being stretched by interest rates, they actually remain upbeat about the long-term outlook.

John Heron, director of mortgages, said: "Some people are sceptical about whether landlords, and small scale landlords in particular, are being squeezed by higher interest rates – causing them to lose confidence in the market. This is not the case, the majority of small scale investors have no plans to sell their properties, instead they remain confident that they will be able to add significantly to their portfolios over the short and medium term."

Mortgage Trust said there are a growing number of students and migrants who want high quality, short-term, affordable housing. This is helping to underpin tenant demand and the long-term growth of the private rented sector. The proportion of landlords’ tenants that are students has increased from 7% to 15% since January, and the proportion of migrants has risen from 3% to 6% over the same period. These groups frequently choose to live in houses in multiple occupancy (HMOs). These types of household are attractive to landlords and tenants alike - landlords receive multiple rents from the one property (boosting their overall yield) and the tenants are able to pay lower rent than if they were a single person household.

Heron concluded: "The prospects for buy-to-let investment remain positive. Landlords are still planning to hold their investments for a long period of time because there is strong tenant demand – particularly from groups that choose to live in shared homes, on which landlords can often get better returns."