Landlords will need to seek professional advice in order to maximise their buy-to-let returns in 2008, according to Alliance & Leicester (A&L).
Research by A&L suggests many landlords go to brokers to receive qualified advice and exclusive buy-to-let deals.
The survey of brokers found 59% of landlords turn to them to receive qualified advice, while a further 20% are seeking exclusive, broker-only deals. A further 11% also speak to their broker to get the best interest rates available.
Brokers believe a third of investor landlords could make an operating profit in 2008, despite the worsening outlook for the housing market, by seeking the right advice. Additionally, brokers say 43% of landlords will make a positive net yield if they run their portfolios correctly.
The fluctuating Bank of England base rate was a key concern for landlords, with 32% of brokers citing rates as a major stumbling block for property investors, while cooling house prices were of concern to 27%.
Mark Blackwell, director of intermediary sales at Alliance & Leicester, says: “The buy-to-let market will continue to be a significant part of the overall housing market for investors and broker sentiment indicates that buy-to-let will continue to deliver in 2008. Those with multiple properties and a higher proportion of fixed rate lending are most likely to be able to withstand any house price cooling and fluctuating base rates.”
However, 10% of brokers were concerned that falling house prices could reduce rental return on properties and have an adverse affect on landlords when they come to re-finance.
Blackwell also acknowledges the difficulties falling prices can cause and says: “Landlords with fewer properties will need to be astute in the coming months to avoid potential pitfalls, with professional advice playing a particularly important role to them at this time.”