Landlords optimistic about buy-to-let market

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by Gill Montia

The specialist buy-to-let mortgage broker, The Money Centre, have highlighted that in spite of increases in the interest rates, landlords are still confident about their investments in the buy-to-let market.

According to research, 73% of landlords see their overall prospects as good and The Money Centre has echoed this and added that property is a long-term investment not short-term.

69% of the landlords surveyed rated property as having above average investment potential, despite some experiencing a minor reduction in rental yields.

75% of those surveyed said they were making a profit despite increased mortgage costs, compared with 73% in February 2007. The majority of landlords plump for fixed-rate mortgages and are reaping the rewards from the upward trend in rent caused by rising interest rates.

Landlords are also optimistic as the rental market is buoyant. Nearly half of landlords surveyed had experienced no gaps between lets in the last 12 months. In 2006, the average time a property stood vacant was 15 days.