Brokers remain upbeat over professional landlords

Mortgage brokers have reported they remain positive about the prospects for professional buy to let investors, although question marks remain around the future of amateur landlords, the latest research from The Mortgage Works has found.

While 45% of brokers questioned said they expected professional landlords to maintain their portfolios, the majority of intermediaries, 49%, said they expected professional investors to acquire new properties this year. This figure is up from 44% when the same research was carried out six months ago, suggesting as buy to let investors continue to ride out the credit crunch, intermediaries are becoming increasingly positive about their prospects. Only 6% of respondents said professional landlords were likely to sell some of their portfolio, down from 12% of brokers who predicted investors offloading property six months ago.

In contrast, there has been a significant increase in the proportion of brokers who feel amateur landlords will not acquire new properties, with 82% of intermediaries saying they do not expect these investors to make purchases, up from 62% six months ago.

Commenting on the findings, Andy McQueen, managing director of The Mortgage Works, said: "Increasingly we are seeing it is the attitude of professional investors, rather than the number of properties they hold, which determines their success and longevity in this market, and these findings suggest brokers too differentiate greatly between professional and amateur investors. True professional landlords understand the property market, the needs of their target customers and the tax and financial implications of running a buy to let business. They are also more focused on building high yielding businesses, as opposed to seeking short-term capital appreciation, and so are excellently placed to not only withstand, but prosper during, the current market."

Notes to editors

This research was carried out with 2,425 intermediaries on The Mortgage Works' website in August 2008.

Intermediaries requiring further information about the products and services offered by The Mortgage Works should contact their business development manager or visit www.themortgageworks.co.uk

The Mortgage Works is a specialist lending subsidiary of Nationwide Building Society.

Media information:

Lucinda Devine, Communications Manager, Nationwide non-retail division,
Tel: 020-7826-2188  Mobile:  07725-680865
Lucinda.Devine@nationwide.co.uk