The buy-to-let market is still looking strong, with many landlords planning to expand your property portfolios. But, there are some clouds on the horizon, so it’s time to be smart about investments.

A recent survey of over 1,100 landlords, by Landbay, revealed that while most are optimistic about their long-term prospects, there are some short-term concerns.

• Fewer Negative Feels: There’s good news – fewer landlords are feeling negative than last year. Only 27% are down on the buy-to-let market, compared to 37% at the end of 2022.
• But Concerns Remain: There are still worries about things like government changes and how landlords are portrayed in the media.
• HMO Confidence: One interesting finding is that HMO landlords are feeling the most confident of all, with over 43% feeling positive about their business prospects.

Buy-to-Let: A Solid Investment

• More Buys: Nearly half of landlords surveyed are planning to buy more property in the next year, up from 32% in the last survey. This is driven by the belief that house prices are likely to rise.
• Bigger Portfolios, Bigger Investments: The desire to expand is most prevalent among larger landlords, with 40% of prospective buyers owning 11 or more properties.
• Locking in Rates: With interest rates on the rise, many landlords are seeking the stability of fixed-rate mortgages. 71% say they would choose a five-year fixed rate when remortgaging, compared to just 49% in the previous survey.

Rent Increases: The Reality of Rising Costs

• Higher Rents: With costs rising, many landlords are planning to increase rents. Over a third (36%) are planning to raise rents by up to 5%, and another 37% are looking at increases between 6% and 10%.
• Managing Costs: Landlords are increasingly taking a professional approach to property management, with over half now managing their properties full-time.

The Future of Buy-to-Let

The buy-to-let market is still a strong investment, with high demand for rental properties and limited supply. However, landlords need to be mindful of the changing landscape, including rising costs and government regulations.

• Government Support: The government needs to continue to support landlords and foster confidence in the market.
• Stay Informed: Landlords need to stay informed about market trends and regulations to ensure they are making the best decisions for their investments.

The key takeaway is that the buy-to-let sector is far from dead. While there are challenges, the long-term outlook remains positive. By staying informed and adapting to the changing market, landlords can continue to reap the rewards of this lucrative investment.