Despite some recent negative feelings towards buy-to-let, the majority of landlords are confident in the sector, believing it is a promising investment opportunity, according to the findings of a survey of 500 UK landlords by property investment consultancy Knight Knox.
59% of landlords are still confident in letting property as a source of income, with only 11% having lost confidence, while 30% are unsure. What’s more, half of respondents intend to purchase another rental property within the next five years.
The Commercial Director of Knight Knox, Andy Phillips, comments: “The results of our survey would suggest that, despite ostensibly damaging changes to the market over the last few years, landlords remain positive about the returns this asset class can generate. Bricks and mortar is likely to remain one of the most stable investment options and has so far weathered the changes brought in by new legislation.
“Close to six million properties in the UK are now in the private rented sector, with this expected to rise to 7.2 million by 2025, which is the equivalent of a quarter of all homes. With this sort of opportunity, and with property prices continuing to rise, investors could potentially benefit from both regular rental income over the years and capital appreciation when the time comes to sell.”
The survey also found that 44% of landlords have been letting property for five years or fewer, suggesting a strong appetite for entry into the market.
When it comes to buying properties off-plan, 83% of respondents had never purchased such an investment, but almost half said that they would consider doing so in the future.
Phillips adds: “Buying off-plan is certainly becoming more popular. With developers having built up strong track records of delivering private rental sector schemes over the last five years in particular, landlords now feel more secure signing on the dotted line with knowledge of the potential rewards they could reap further down the line.”
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