Demand from tenants still rising
Demand from tenants remains strong but landlords are worried about the short-term prospects for the buy-to-let sector, according to the latest report from specialist lender BM Solutions.
The research noted that four in 10 (41%) landlords report seeing an increase in tenant demand over the last three months.
There has now been an increase in demand from tenants in each of the last four quarters, with only 5% of landlords reporting seeing demand weaken to any extent.
The biggest rise in demand from tenants was in the East of England, where 52% of landlords reported an increase in the last three months.
Confidence on the slide
Only a third of landlords (34%) expressed confidence in the UK private rental sector in the third quarter of 2015, compared to 59% in the second. And just a quarter are confident about the UK’s financial markets compared to 37% the previous quarter.
Phil Rickards, head of BM Solutions, said: “There has clearly been a spotlight shining on the buy-to-let market and Private Rental Sector for most of 2015. Landlord confidence in the outlooks for the private rental sector as a whole and landlord’s own lettings business have seen significant declines when compared to last year.
“However, the market is still holding up, and at the same time four in 10 landlords report demand has increased in the areas where they hold properties during the last quarter, and yields remain strong. There’s no doubting 2016 looks like a challenging year ahead however I take comfort in the fact there’s still a need for a strong private rental sector along with good quality housing to support demand.”