Over half of buy to let investors believe interest rates will decrease over the next year, while 64% think the base rate has already peaked.
The proportion of investors who judge that now is a good time to buy property has increased to 76% in October, up from 72% on last month, according to Property for Life’s second investor confidence tracker.
The base rate has stayed at 5.75% for three successive months and is generally expected to remain at this level after the Monetary Policy Committee’s decision on 8 November, with a very slight possibility of a drop before Christmas.
Investors now appear clearer on the direction interest rates will take over the next year, with 54% expecting a decrease. Only 18% are expecting an overall increase in the base rate compared to 34% last month – almost a 90% decrease.
‘No matter what the critics say, the buy-to-let market remains buoyant,’ says David Austin, director of UK-based property investment consultancy Property for Life (www.propertyforlife.com). ‘The belief among investors that the base rate has peaked appears to have led to an increased feeling of security, prompting a greater percentage to be confident that now is still a good time to buy investment property.
‘As always, some areas of the market are faring better than others, but seasoned landlords will know where best to invest and are in it for the long term to take advantage of high tenant demand and strong returns.’