Of 3,179 brokers questioned in the lender’s latest buy-to-let survey, 62 per cent say they expect novice landlords to stop buying new properties and 58 per cent think that fewer first-time investors will enter the BTL sector this year.
But 44 per cent say professional landlords will continue to buy properties, possibly using opportunities created by market conditions to snap up bargain purchases.
The same proportion expect professional landlords to maintain their current portfolios while only 12 per cent expect professional investors to seek to sell some of their properties.
The Mortgage Works says its research shows the outlook in terms of rental yields and tenants is strong, with 40 per cent of brokers suggesting that yields will rise this year and 94 per cent expecting tenant demand to remain steady or rise.
Managing director Andy McQueen says: “Intermediaries are on the front line of the mortgage market and so they are well placed to assess the prospects of professional landlords. Clearly, the current climate is not ideal for first-time landlords, given the limited number of deals available to them, but experienced investors may find excellent opportunities in a cooling housing market to purchase additional property.”