Buy-to-let investors look to future

One in four buy-to-let investors plan to keep their properties for more than 15 years, says 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.

Three quarters of landlords expect to hold on to their property for more than five years, while 25% plan to keep their investments for more than 15 years.

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 10 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, managing director of Paragon, says: 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.