According to research carried out by a Landlord’s association, landlords are extremely positive about the UK’s recovery and nearly a third (31 per cent) are confident in the financial market continuing to be “good or very good”. This is a rise of 10 per cent from previous expectations of 21 per cent in the same period of last year.
The research also showed that 27 per cent of landlords have voiced their interest to invest further into the property market over the forthcoming year.
There is a slight fear that any form of interest rise may affect their ability to keep up with the mortgage repayments and 21 per cent said that they would definitely be unable to cope with a 2% rise. Over a third (35 per cent) would find their situation hard if a rise of 2.5% was introduced and 41 per cent would struggle with a 3% increase.
The Bank of England have recently stated that the current interest rates will stay at 0.5% and that it is likely that towards the end of 2015 will see the first rise being introduced.
A spokesperson for the association said: “Landlord optimism around the UK’s financial recovery, coupled with the Bank of England’s announcement makes good reading for anyone considering buy-to-let investment. This is evidenced by the significant number of landlords who will be looking to add property to their portfolios over the coming months.
“However, it’s inevitable that interest rates will rise as the economy improves and we move out of recession and our findings show that moderate increases would leave many landlords stretched in meeting their mortgage repayments.
“Anyone thinking about buy-to-let investment should do so with a view to long-term sustainability, and vital to this is adopting a professional approach to your lettings business.“
If you are a current landlord, or thinking of investing in the property market, then contact Cadman Homes, a local estate and letting agency based in Rugby and Coventry who specialise in advising landlords how to maximise their yields, capital growth and can advise on the local property markets in both the popular Rugby and Coventry areas.