Insurance News Archive

Long-term commitment on the cards from landlords

Landlords looking to make money in the buy-to-let sector are willing to stay in the market for a considerable period of time, a new report has found.

According to a survey by BDRC for Alliance & Leicester Mortgages, 53 per cent of landlords expect to remain in the buy-to-let game for at least another ten years.

These figures are all the more impressive considering the three recent quarter point interest rates that landlords trying to pay off buy-to-let mortgages have had to endure.

However, the rises could be a blessing in disguise, as they have caused many potential first time buyers to reconcile themselves to renting for the immediate future until mortgage rates are more agreeable.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: "With the majority of landlords expecting to stay in the buy-to-let market for the long-term, there is no doubt the sector will remain an important and stabilising part of the overall housing market."

Some three-quarters of those landlords canvassed said they were optimistic about the buy-to-let sector in general.

25 Jan 2007