Mortgage brokers optimistic about buy-to-let

Mortgage brokers remain upbeat about the prospects for professional buy-to-let investors but are unsure about amateur landlords, a survey has revealed.

In a study from The Mortgage Works, while 45 per cent thought they would maintain their portfolio as it is this year, 49 per cent said they expected professional investors to acquire new properties this year.

This is up from 44 per cent six months ago, suggesting intermediaries are becoming more optimistic about landlords' ability to ride out the credit crunch.

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

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."