British landlords are still positive about buy to let despite reports of a slowdown in the market, according to the latest research by Bradford and Bingley.
The UK's largest buy to let lender's survey of nearly 4,000 landlords revealed that, contrary to reports that the market is heading for a crash, 60 per cent are "categorically undaunted", 86 per cent either plan to increase their portfolio or leave it untouched in 2008 and 95 per cent said they are positive about rental yields.
The report also showed that tenant demand is continuing to strengthen, "driven by an increasingly mobile and fragmented population, and a shortage of affordable housing stock for sale," and that rental yields remain steady at 5.72 per cent, which is just up from October's figure of 5.71 per cent.
"Over half of our landlords report that they have added to their portfolio this year which is extremely encouraging and indicates that the prospects for the sector remain positive in 2008," said Jeremy Law, head of buy to let, Bradford and Bingley.
"Their views are the most authoritative in the industry as they are expressed by those who are at the coalface of the buy to let market. These are the people on the ground, who are researching their areas, taking out the mortgages, buying, maintaining the properties and managing the tenants, therefore their opinions are important," he said.
Mr Law continued: "The social and demographic trends that have been driving the market continue to remain strong with rental demand remaining robust. If house prices stagnate or fall, we are likely to see demand for rental properties strengthening, leading to improved rental yields.
He concluded: "The results from our landlord confidence survey, together with the economic indicators surrounding buy to let, reveal that the sector is most definitely here to stay and will remain strong."
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