The National Landlords Association says over a quarter of members may buy at least one additional buy-to-let property this year but it warns that many will need help when interest rates rise.
An NLA survey of 1,111 members shows that 31 per cent expect the market to be good, possibly very good, during the rest of 2014 with 27 per cent buying an additional investment property.
But in a reminder that landlords in some parts of the country are still in a financially-marginal position, 21 per cent say they may have difficulty if interest rate rises took the base rate to 2.0 per cent. Over 40 per cent would be in difficulty if base rate hit 3.0 per cent.
It's inevitable interest rates will rise as the economy improves and our findings show that moderate increases would leave many landlords stretched in meeting their mortgage repayments. Anyone thinking about buy-to-let investment should do so with a view to long-term sustainability, and vital to this is adopting a professional approach to your lettings business explains Carolyn Uphill, chair of the NLA.
The association is now launching a campaign - Professional Practice for Profit - to help landlords adopt the most professional approach possible to avoid financial problems when mortgage payments increase.
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