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Credit squeeze - UK landlords under pressure, but mortgages are still out there and they still plan to buy!

Despite a huge number of mortgage product withdrawals in the UK as a result of the credit crunch over half of buy-to-let landlords (52%) still believe it is relatively easy to obtain mortgages.

And one in five are currently looking to buy further properties, an increase from December last year.

The landlords who remain determined to expand their portfolios are looking to new regions and cities, according to independent research commissioned by The Money Centre.

Central London remains a popular investment area with 34% of landlords saying they are looking to buy in the heart of the capital.

However, the North West and non-central London areas are also highlighted, with more landlords looking to buy properties in these areas.

The top five cities where landlords surveyed currently have properties are:

1. London
2. Glasgow
3. Manchester
4. Birmingham
5. Cambridge

London, Glasgow, Birmingham and Manchester have featured in the top five locations throughout the last 12 months, but this is the first time Cambridge has entered the top five, pushing Leeds out of the top of the table.

Flats remain the most popular type of property for both buying and selling prospects, but the research has highlighted a possible trend towards terraced houses with more landlords looking to these than sell off existing terraced stock.

Proximity to a town centre, or university and travel links have remained the top three influences for landlords choosing a location.

The Money Centre has carried out regular waves of research into landlord's perceptions and activity since October 2006.

This latest survey shows that overall optimism about business expectations in the next year has dropped to the lowest level recorded.

However, over half (52%) of the 508 landlords surveyed still believe the overall prospects look positive and 61 per cent believed rental yield expectations would remain strong.

The majority of landlords entered the market to help secure their financial position or to generate an extra source of monthly income.

They remain committed to buy-to-let in the long term with over half (52%) of those surveyed in March reporting that they expect to stay involved in property letting for more than 10 years. Only 19% said they expected to stay in letting for less than 5 years and 8% said they were unsure.

Lynsey Sweales, director of The Money Centre, said: "Buying property is always best viewed as a medium to long term investment option and that's how most buy-to-let landlords see it.

"The research shows the average length of time landlords expect to be in letting is 17.5 years, which is why scaremongering over house prices dropping is not a major concern for professional landlords."

POSTED BY ROBIN BOWMAN ON WED 28TH MAY AT 11:47 GMT
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