19th June 2007
Reuters – Interest rate rises haven't dampened buy-to-let
By Michelle McGagh
LONDON (Citywire) - More than half of landlords are looking to increase their property portfolios despite recent interest rate rises, says research by Bradford & Bingley.
The survey of 5,000 landlords revealed that the rises in the interest rate hadn't dampened their confidence, with 88 percent planning to increase or maintain their property portfolios.
There was also increased confidence in rent levels, with 96 percent expecting their rent levels to increase or stay the same over the next six months.
Those most likely to invest in buy-to-let property are everyday people looking for capital growth and a means to supplement their pension pot. The majority of landlords hold down a day job in addition to maintaining rental properties while 10 percent of investors are full-time landlords.
Most are investing for the long-term with 50 percent saying they have been investing for over five years and 63 percent have between one and five properties. Brighton was revealed as the most popular buy-to-let location and 29 percent of investors own a property in the South-East.
Andy Wiggans, director of mortgages at Bradford & Bingley, said: "Despite recent reports of a slowdown in the buy-to-let sector, our biggest ever survey of those at the heart of the market shows it remains strong. Higher interest rates may have an effect on cash flow but they have no impact on long-tern capital returns.
"Buy-to-let remains a popular market that attracts a wide spectrum of people from all walks of life looking for long-term capital growth or a means of supplementing their pension."
(c) Citywire Financial Publishers Ltd 2007.