Buy to Let Landlords Show Improved Market Confidence

Results of the Young Index, published last week suggest that consumer confidence in the UK property market continues to improve.
The Young Index was based on a survey of British buy to let landlords, who mostly believe that market conditions are better than in the 3rd quarter of 2009 and in the 4th quarter of 2008.
The survey also showed that 99% of questioned investors plan to hold their assets for at least 1 year as current market conditions in the property sector are improving only due to weak supply. At the same time, the proportion of UK investors looking to hold their assets for 10 years grew by 5% in the 4th quarter of 2009 to 49%, up from 44% in the 3rd quarter, while 22% of respondents plan to hold for 20 years or more.
The Young Index revealed that the vast majority of UK buy to let investors (59%) are willing to expand their property portfolios next year by purchasing new properties in London, while 43% of investors are looking to buy new properties outside the capital. The figures have changed substantially from the same time last year, when they stood at 33% and 8% respectively.
As for UK house prices, more than 75% of surveyed buy to let landlords believe that property prices in London will stay the same or rise within the next 12 months, while 60% are determined that house prices outside London will rise in 2010.
Interestingly enough, though, the overall forecast of UK landlords concerning house prices suggests that property values in London will grow by 0.7% by the end of 2010, while prices in other UK regions will fall by 1%.
It is also worth noting that the proportion of buy to let landlords, determined that the major concern over the recovery of the British property market is mortgage availability, went up to 39% in the 4th quarter of 2009, up from 28% at the same time last year.