Research from specialist buy to let business Platinum Property Partners has shown that there is high confidence in the buy to let market heading into the New Year.
This confidence is set to encourage major investment by UK property investors in 2015.
42 per cent of the landlords taking part in the survey said they believe interest rates will only rise by less than two per cent.
Despite the fact that any rise in interest leads to more expensive buy to let prices, 43 per cent of landlords are hoping to expand their portfolios of rental properties in the coming year with 14 per cent intending to buy two or more properties during 2015.
Landlords with Houses in Multiple Occupation (HMOs) for young professionals and key workers are the most ambitious, as over half (52 per cent) plan to purchase more properties and 14 per cent expect to add three to their existing portfolio.
The research also reveals that landlords remain confident about capital growth and feel sure that house prices will continue to grow over the next five years.
49 per cent predict property prices in the UK will rise by up to 10 per cent over this period; another 28 per cent believe we will see an increase of more than 10 per cent.
HMO landlords were once again the most positive, with 43 per cent of this group forecasting property price growth of over 10 per cent and none anticipating a decrease between now and 2020.
Growth projected throughout New Year
Chairman of Platinum Property Partners Steve Bolton commented that whilst a rise in interest rates appears to be the biggest concern for landlords as we head into the New Year, most don’t expect dramatic or unaffordable increases.
This means the sector will continue to grow, despite a probable interest rate rise.
He highlighted how investors in HMOs showed the most intention to expand, something that indicates the extremely attractive returns available when renting to working tenants and young professionals.
This has “cultivated robust confidence among those already reaping the fruits of this type of investment,” he explained, “and has sown the seeds for ambitious expansion in the sector next year.”
He believes this suggests long term health and prosperity in the buy to let sector as thousands of young professionals are depending on the flexibility of rental accommodation in order to follow the best job opportunities.
View results from our own Property Investor Survey. November 2014 results will be published shortly.