Landlords in buy-to-let market losing confidence

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by Lin Freestone

BDRC, a market research organisation, issues quarterly reports following interviews with hundreds of UK residential landlords in order to establish a snapshot of landlord sentiment and insight.

Its latest survey shows that landlords are losing confidence in the buy-to-let market, with evidence of declining profitability and rising levels of non-payment of rent.

Since BDRC began issuing its quarterly reports towards the end of 2006, profitability in the rental market is seen to be at its lowest and levels of missed rent are at their highest.

Only two out of every five landlords questioned are optimistic about the private rental sector. However, approximately 44% still considered that property would remain their main source of income.

Of the 500 landlords interviewed in the current survey, 17% reported that they had missed a mortgage payment in the past quarter as a result of non-payment of rent by tenants.