RLA News Service

Residential landlords are becoming more confident in the prospects of the buy-to-let sector, according to statistics compiled by rental website Upad earlier this month. During the first days of the month, 61 percent of residential landlords felt that the sector was moving in the right direction, compared to 57 percent who had a positive view of the market one month ago. As such, a rise in confidence among landlords appears to be a trend spanning at least the last four months. One of the main factors behind this confidence is the increasing signs of life visible in the buy-to-let finance sector.

Yet landlords do still have concerns about more recent developments that may hinder the market’s growth. According to the Upad survey, the two main issues that arose most often among respondents were concerns about government red tape and increasing regulation, as well as a possible decline in the number of university students seeking private sector rental accommodation. A number of universities in Britain have taken to increasing the availability of dormitory and traditional residence accommodation on campus, and this may reduce demand for rental properties in traditional college towns.

Upad chief executive James Davis noted that the buy-to-let market has gone from “strength to strength” and that his organization has tracked four straight months of rising confidence among landlords. But Davis added that potential changes in lending practices on the part of major banks and the greater availability of loans will have a major impact on the future of the market.