Buy-To-Let Investors Target North West and South East

Two-fifths of landlords are planning to purchase more property in 2018

Landlords in the UK are optimistic that their buy-to-let (BTL) property portfolios will continue to perform well in 2018, despite the challenges the market faces from Brexit-related uncertainty and affordability stress tests.

According to the annual ‘buy-to-let barometer’ by Shawbrook Bank, 65% of investors were confident in their portfolio, whilst just 14% of respondents were concerned.

Growing returns and rising demand were cited as the two primary reasons for the confidence, as 21% of landlords had seen an increase in tenant demand in 2017.

Meanwhile, investor sentiment towards the UK economy is waning due to lacklustre growth and the uncertainty surrounding Brexit, as more landlords in 2017 (42%) expressed concern than in 2016 (33%).

Despite this, appetite for buy-to-let property remains healthy, with 39% of landlords planning to invest in an additional property in 2018, whilst expressing a strong preference for property in the North West and South East regions.

Commenting on the data, Karen Bennett, managing director of Shawbrook Bank commercial mortgages said: “There’s a healthy dose of uncertainty around at the moment, but the BTL market is showing its resilience. Property continues to offer an excellent underlying investment vehicle for professional landlords with the right investment strategy.

“Whilst the investment case for BTL remains strong, there are particular challenges ahead for portfolio landlords and the additional impact of the PRA (Prudential Regulation Authority) changes.

“Landlords now face much more stringent affordability tests and it’s therefore more important than ever than landlords are clued up on their obligations as the market continues to get even more complex.”