Business Development Research Consultants: Landlord Research - 06.11.2008

Author: Mike Freeman Posted on: 06 November 2008

During the past few day, Business Development Research Consultants (BDRC) published their latest findings of landlords perception
of the Buy to Let market. Their research was conducted during the Q3 period of 2008 and involved an indepth online survey of 509 residential property landlords.

Whilst the overall report is extensive and covered a number of aspects, including lenders of choice and ease of obtaining a mortgage, within the report there are some interesting reponses which we can hopefully take as being the first positive signs for the future.

Although not out of the woods yet, it was felt that there had been a levelling off of optimism in the market following significant falls since 2007. As a result, BDRC concluded that the rental market was beginning to show signs of recovery with 14% of landlords indicating prospects were very good for the forthcoming period, an increase from 10% during their last survey in June 2008.

The results from the professional landlord sector, those who hold more than 20 properties, appeared to show the most marked improvement with landlords maintaining that property offered a "superior" form of investment and provided a strong or reasonable investment potential.

The reduction in property values has prompted some landlords to seek new property, with 20% expecting to purchase in the next quarter, with flats and semi detached houses being the letting properties of choice.  

The majority of landlords reported they were in the market for the long term, with the average time a landlord had invested in property being 17 years.  There are many reasons for letting property, but it is rental yield that is viewed as the main focus for 60% of landlords, this increased to 73% of the professional landlords polled.

With speculation rife that Bank of England Base Rate (BBR) will be significantly reduced by the Bank of England, the prospects of lenders reducing their rates is heightened which may prompt some landlords to rethink their borrowing requirements.  It also makes BDRC's review of Q4 2008 an eagerly awaited document.