Fri, 18 Jan 08
Despite recent speculation about the future of the sector, the majority of landlords are optimistic and still making a profit from their property investments.
The research, among more than 500 landlords, found that they plan to keep their investments for an average of 18 years, with just 6% saying they will sell up by 2009. More than half (58%) expect property prices to outperform other investments over the long term, with one in five (18%) saying they think property has the 'strongest' potential for investment growth.
Long term goals
Just 7% of those questioned said they had experienced financial buy-to-let losses while 77% reported making a profit. The vast majority (82%) of landlords say their properties aren't their main source of income, yet more than half (54%) have well managed portfolios and haven't experienced a void period in the last year. For those who had experienced void periods, the majority were for less than a month and the landlords had savings or earned income that they could rely on to cover the rent gap.
Allison Crawford, director of sales and marketing at Standard Life Bank, said that the future for landlords lay in smart portfolio management to ensure they met their long-term goals.
Ms Crawford said: There have been recent reports about how buy-to-letters will desert their properties and pull the housing market down. While this is certainly a period of stabilisation rather than growth, landlords are telling us they are investing for the long term. With financial security remaining the main driver for buy-to-let, switched on landlords will be keeping a close eye on their portfolios and market conditions to maximise success.
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