New landlords see buy-to-let as a wise investment

New landlords are continuing to invest in buy-to-let according to the latest research by Mortgage Trust.

The findings indicate that new buy-to-let investors are putting their money into property because they are confident of the long term rewards. 75% of landlords expect to hold on to their property for more than five years, with 26% saying they foresee keeping their first property investment for in excess of 15 years.

John Heron, Managing Director, commented: “Contrary to some reports, new landlords are continuing to invest in rental property and the expectation of landlords is that they will hold on to their initial investments for quite a significant time period. There is continuing confidence in prospective house price growth and the rewards that can be achieved from capital gain on a property, as well as the rents achievable in the shorter term. All in all, the total returns achievable on a buy-to-let portfolio are an attractive prospect for investors.”

Recent high tenant demand has been pushing up rents, which have seen a 6.9% increase over the last three months - resulting in higher yields. On average, respondents expected their portfolio to increase by a factor of three over the next ten years, indicating that they are confident that they will generate attractive rental incomes that can be re-invested in their portfolio for the longer term.

John Heron concluded: “These small scale landlords are professionals from other sectors who are making considered choices about where to invest their money to maximise their returns - and they are choosing buy-to-let.”