Buy-to-let landlords show tide of optimism

A major survey of property investors attending the Property Investor Show North in Manchester reveals an overwhelming tide of optimism amongst buy-to-let landlords.

81% of property investors expect the buy-to-let market to grow over the next 12 months. Only one respondent expected a crash.
91% are planning to expand their existing portfolios over the next year.
While 63% of the investor’s interviewed are based in the South of England, 62% believe the next buy-to-let hotspots are in the North of England with 10% citing Manchester and 6% Liverpool.
Key reasons for future hotspots are:
* Strong existing infrastructure (roads, transport links etc.)
* Regeneration investment.
84% stated that their buy-to-let investments were their prime source of future wealth, with only 2% citing the stock market, and 0% said they were relying on their pension.
45% of landlords are planning to remortgage over the next 12 months and 27% have remortgaged at least one of their properties over the last 12 months.

The typical landlord in this survey has two investment properties, is in their mid thirties, Southern based and owns their own home. Fifty one percent of buy-to-let properties are apartments (mostly with 2+ bedrooms), 21% terraced, 19% semi detached, while only 9% are detached homes. The average purchase price is £136,000.

58% of landlords use a letting agency, the main reasons being:
* Saves time/ less hassle 47%
* Their expertise in management 22%
Of the 42% who manage the tenants themselves, the main reasons are:
* Letting agent is too expensive 45%
* Do not trust a third party 20%

However, Malcolm Harrison for ARLA, the Association of Residential Letting agents, commented, "It is difficult to see that these landlords have worked out the cost benefit of using an agent. As well as agents’ fees being tax allowable, the agent is always there to act in loco parentis for the landlord. This means the landlord is covered when in that vital meeting or away and there is a source of reliable tradesmen to attend to problems quickly.”

“Tenants feel easier when their deposits are held in a fully bonded ARLA client account and they have access to a Tenancy Dispute Service. Apart from being a good selling point, this element of consumer protection is becoming increasingly important and is likely to be law before very long."

Nick Clark, Managing Director of Homebuyer Events, organisers of the Property Investor Show North comments:

“It is well known that the majority of Landlords have traditionally resided in the south of England, but the tide looks set to turn with almost two thirds expecting future investment hotspots to be in the North. With over 90% planning to expand their portfolios this year, the northern buy-to-let market looks set to remain very buoyant.”

“With 81% of property investors expecting further growth in the buy to let market and a staggering 91% planning to expand their current portfolios, any talk of an imminent slowdown in the buy to let market looks very misconceived.”

The Property Investor Show North has attracted over 130 exhibitors and a huge number of people have already bought tickets for the weekend. Said Nick Clark, “This is the first Property Investor Show in the North of England and, given the phenomenal response, it certainly is not going to be the last.”

The Show has been running for two years at London’s ExCel exhibition centre. This will be the first northern equivalent of the Show and will be held at the G-Mex centre in Manchester from 18 – 20 June 2004. Tickets can be purchased at the ticket office or at www.propertyinvestor.co.uk


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