Adverse Mortgages UK

More than 70 per cent of buy-to-let landlords expect their investments to perform well during 2008, the results of a new survey have revealed.

The buy-to-let market has been badly affected by the problems in the wholesale funding market and a recent study by Moneyfacts.co.uk found that 89 per cent of sub-prime mortgage products in the sector have been withdrawn since July.

However, a survey commissioned by Alliance & Leicester found that landlords remain confident that buy-to-let is a sound investment.

It found that 77 per cent of them make a profit from their properties and that 71 per cent believe their prospects for 2008 are good.

Landlords who own substantial property portfolios were more optimistic about their short-term financial prospects than those who have a single rental property to supplement their main income.

However, Alliance & Leicester's head of specialist mortgages Jeremy Claridge insisted smaller buy-to-let investors could expect to make profits in the long-term.

"Landlords with only one or two properties expect their investment to break even annually. The long-term view is positive house price inflation will yield a positive return over the investment period," he explained.

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