Confidence among landlords is high, with three in five planning to expand their portfolios over the next six months, according to specialist mortgage broker Mortgages for Business.
While the majority of investors (63%) will need to remortgage existing properties to fund their expansion, a similar proportion (62%) believe lenders are not doing enough to support landlords and property investors.
The results come from a Mortgages for Business survey of 185 landlords.
One in five (20%) feel that lenders should reduce their fees, while 18% believe lenders should increase LTVs and 15% feel that lenders should make lending decisions case by case, rather than rely on computers and credit scores.
Four-fifths (81%) of property investors intend on investing in vanilla – or ordinary – buy-to-let property over the next six months.
However, 22% plan on expanding their portfolios with Houses in Multiple Occupation, 15% with multi-unit freehold blocks, and 14% with commercial or semi-commercial property, all of which provide higher average yields for investors.
David Whittaker, managing director at Mortgages for Business, said: “Although overall mortgage and lending to first-time buyers is finally starting to increase, landlords remain confident about the future of the private rental market and plan to expand their portfolios over the coming months.
“However, more and more investors are exploring which options will give them the best returns on their investment.
“While vanilla buy-to-let properties remain popular, more complex deals are offering higher yields on average and are growing in popularity, particularly because of the shortage of housing stock currently on the market.”
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