Brokers have faith in professional landlords

Brokers remain positive about the prospects for professional buy-to-let landlords, research from The Mortgage Works reveals.

Of the 3,179 brokers questioned in the latest survey, 44% believe professional investors will continue to acquire properties in the coming months.

The same proportion of brokers told TMW they felt professional investors would maintain their current portfolios, with only 12% of brokers suggesting investors would seek to sell some of their properties.

The report shows 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% expecting tenant demand to either remain static or rise in some cases.

TMW says brokers were less buoyant when it came to first-time landlords, with 62% believing novice landlords would cease purchasing new properties in the coming year.

More than half, 58%, suggest fewer first-time investors will enter the buy-to-let sector in 2008.

Andy McQueen, managing director of TMW, says: “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.”