Confidence in the 2013 buy-to-let market among landlords is apparently less ‘bullish’, according to a survey by Upad. This comes as the amount of landlords feeling optimistic about the private rental sector in 2013 has fallen to 63%, down by 10% at the start of 2012.
James Davis, chief executive officer at Upad, says the general decline in confidence in the market came during the latter half of 2012 when the market failed to significantly improve. This led to ‘concerns about tenant’s personal finance with bank lending continuing to be challenging and increases in the rental values slowing.’ He warns further that as the recent adverse weather is ‘tipped to trigger a triple dip recession’, some landlords may be ‘cautious about over exposing themselves.’
There are, however, reasons for optimism, according to the IHS Global Insight economist Howard Archer. He says that low interest rates, falling house prices and an increased demand for rented accommodation due to expensive living costs, means landlords are in a good position to capitalise on the rising number of tenants.
Similarly, the Association of Residential Lettings Agents (ARLA) also report an increase in the average number of properties owned by landlords, rising from 7 per landlord at the start of 2012, to 8 by the fourth quarter of 2012. It would appear that for those who can afford to increase their stock, the buy to let mortgage sector in 2013 could be very profitable.