There is an air of confidence amongst buy-to-let investors, despite the current political situation in the UK, with a new prime minister coming into office over the next few weeks and of course, the on-going issue of Brexit.
It has become apparent that buy to let landlords are not allowing these political events to dampen their spirit when it comes to investing. According to a recent survey by the property lender Cambridge & Counties Bank, two thirds of UK landlords are feeling positive about the buy-to-let sector over the next three years, with 13% of respondents feeling very optimistic when it comes to investment growth and strong yields.
The lender also found that sizeable portion of the landlords surveyed were even looking to expand their property portfolio further within the next three years, with 19% looking to grow their portfolio by a third and 11% looking to double their portfolio. As well as looking to expand their portfolio further, the majority of landlords are looking to refurbish their existing properties, spending around £10,000 on average. Some investors are even looking to make a considerable investment on their existing properties, with 4% of respondents saying that they intend to spend as much £50,000 on refurbishments.
Furthermore, the estate agent Benham and Reeves carried out a survey of 5,000 investors, and 73% of the respondents considered buy to let to be the most lucrative and least volatile investment venture in the current market. In addition to this, 37% of the respondents felt confident they will see an adequate return over the next decade.
These findings are certainly encouraging during this current climate, and the director of Benham and Reeves backs this up, saying: “For the institutional buy-to-let investor, this is but a mere blip on a much longer timeline and the overwhelming overtones are that while Brexit poses a challenging obstacle for the immediate future, the market remains the investment option of choice with many confident on a return further down the line.
“This is a testament to the durability of buy-to-let bricks and mortar in the UK as, despite a government-backed clamp down, it remains a lucrative business and one that continues to gain the backing of those that are on the frontline.”
Regardless of what legislation will be introduced or the outcome of Brexit, the demand in the private rented sector shows no sign faltering, which means that buy-to-let will continue to be a lucrative investment opportunity.
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