Landlords 'see portfolios doubling in 5 years'

Buy-to-let mortgages look set to maintain their popularity over the coming years, with a survey by Mortgage Trust showing that new landlords expect their portfolios to double over the next five years.

The study reveals that the average number of properties owned by landlords is expected to rise from 1.8 now to four in five years' time.

Mortgage Trust claimed that the optimism in the buy-to-let market is at odds with reports about investors being stretched by interest rate rises.

John Heron, director of mortgages with the company, said: "Some people are sceptical about whether landlords, and small scale landlords in particular, are being squeezed by higher interest rates – causing them to lose confidence in the market.

"This is not the case – the majority of small scale investors have no plans to sell their properties, instead they remain confident that they will be able to add significantly to their portfolios over the short and medium-term."

One of the main factors thought to be underpinning the private rented sector is demand from students and migrants, who want high-quality, short-term affordable housing.

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