Brokers remain bullish about professional landlords

Brokers remain bullish about the prospects of professional buy to let landlords, new research from The Mortgage Works has found.

Of the 3,179 intermediaries questioned in the latest survey nearly half, 44%, said they believed professional investors would continue to acquire properties in the coming months, possibly using opportunities created by the current market to snap up some bargain purchases. The same proportion of brokers felt professional investors would maintain their current portfolios, with only 12% of intermediaries suggesting investors would seek to sell some of their properties.

The outlook in terms of both rental yields and tenant demand was also strong, with 40% suggesting yields would rise this year, and an overwhelming 94% of intermediaries expecting tenant demand to either remain static or rise in some cases.

Brokers were less buoyant however when it came to first-time landlords, with 62% believing novice landlords would cease purchasing new properties in the coming year, and over half, 58%, suggesting fewer first-time investors would enter the buy to let sector in 2008.

Commenting on the findings Andy McQueen, managing director of The Mortgage Works, said: "Intermediaries are on the frontline of the mortgage market and so are well placed to assess the prospects of professional landlords. Clearly the current climate is not ideal for first-time landlords, given the limited number of deals available to them, but experienced investors may find excellent opportunities in a cooling housing market to purchase additional property."