Buy to let landlords 'becoming more optimistic'

19 May 2010

Written by David Whittaker.

Buy to let landlords are seeing the private rental industry in the most positive light since 2007, the National Landlords Association (NLA) has said.

The organisation's first Landlords' Optimism index published today (May 19th), showed that 57 per cent of rental property owners rated the outlook for their lettings businesses as good or very good for the next three years.

A slight improvement in the way the UK financial market is perceived by landlords was also noted, with 28 per cent expecting to see better conditions in the next three months - five per cent more than this time last year.

Optimism in the private rental sector, the NLA suggested, could be the result of an increase in tenant demand and a rise in housing prices. The association also cited stronger profitability as a cause for positive forecasts with portfolio landlords set to generate enough money to save some earnings each month.

Chris Norris, policy manager at the body, said: "With rent arrears and void periods both stabilising, 2010 could prove to be a real catalyst for landlords who are looking to expand their portfolios."

Landlords may also be finding conditions easier as low interest rates on buy to let mortgages are helping them keep on top of their repayments, according to independent property industry expert Malcolm Harrison.

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