A survey of buy to let landlords carried out by property fulfillment company i-PropertyAssets has revealed that 70% view the current property market conditions as an opportunity to expand their portfolios.
The survey of sister company Property Secrets 70,000-strong membership base also showed that refurbishment opportunities were the most likely way for a buy to let landlord to add to their portfolio with 40% preferring that option.
Repossessions and property auctions were viewed as an opportunity by 30%, while just 12% saw off plan / new build property as a way to expand. The remainder chose commercial, luxury and other options.
Around 50% of landlords surveyed said they expected house prices to fall over the next 12 months, but only 5% expected a “sharp decline”. 36% expected no change and 13% anticipated weak growth in the markets in which they were invested.
Over 20% of buy to let landlords declared they were “not worried” by the credit crunch, while 41% were “most concerned” about mortgage costs, 31% about capital growth.
Property investors anticipated a much sunnier outlook in terms of rentals, however, with just 6% concerned about yields. 62% of respondents anticipated growth in rentals in the next 12 months, while only 8% thought there would be a decline. 31% expected levels to remain the same.
Commenting on the survey results, i-PropertyAssets Director Peter Bennett said:
”I think what this survey shows is that, at least amongst intelligent property investors and buy to let landlords, there remains confidence in the UK property market.
“While it’s a given that house prices will fall in some areas, the results of this survey show that there is no real concern about a proper crash. In fact, landlords appear to be looking forward to increasing rents and while they’re concerned about the availability of finance do not appear to be worried about their existing portfolios.
“The current credit crunch might be restricting borrowing and buying – but it isn’t dampening the appetite to do so amongst property investors.”
The i-PropertyAssets Landlord Survey is ongoing at www.i-propertyassets.com
