Private sector landlords in the UK are confident about the future with 67% positive about the outlook for the buy to let sector, according to a new research published today (Monday July 04).
The latest survey by specialist lender, CHL Mortgages, shows that landlords were particularly positive about rental demand with 43% suggesting it is now better than six months ago and it is sufficient to cover mortgage repayments, maintenance and cost.
If you rent a house in Liverpool, CHL believes that rental yields for residential investment properties have accelerated since the credit crunch and subsequent recession three years ago.
In the short term some 33% of landlords said they were looking to buy more investment properties in the next 12 months, up from 28% last year. However, a lack of finance was still cited as the biggest constraint to achieving this aim. The other major constraint on expansion was the high deposit requirements that now come with buy to let mortgage products.
It also found that one in five respondents said they would consider fixing their buy to let mortgage to protect them against future interest rises and four in five landlords make adequate provisions for maintenance of their investment properties from rent receipts.
The same figure indicated they do not make over-payments on their borrowings indicating that borrowers are more inclined to channel any surplus rental income towards maintenance.
CHL believe the growing positivity shown by its landlord borrowers is reflected in its own arrears experience. At the end of May this year, the number of accounts greater than three months in arrears had fallen to 855 from a 2010 year end figure of 933. This represents just 1.92% of CHL’s total of 44,477 live accounts on its loan book and the lender fully expects this downward trend to continue despite a still uncertain economic outlook.
Whether you’re looking to rent a flat in Liverpool or if you’re interested in renting out your flat in Liverpool speak to Bluerow lettings. They’re more than happy to help
