Buy-to-let investors are no longer reviewing the mortgage market on a regular basis and intend to hold onto their assets for the long term.
Results for Q3 2009 from the Group’s Young Index survey of investor market sentiment show that fewer than one third of residential property landlords are tracking their mortgage options on a regular basis and only 11% are assessing the market as regularly as every three months.
This is the second consecutive quarter to see such a low proportion of investors tracking their options (Q2 2009 results was 12%) and represents a sea change from the situation in Q2 2008 when 65% of respondents were evaluating the market on a quarterly basis.
Only 29% of respondents now evaluate their mortgages at least every six months, compared to 82% of investors who were actively tracking new deals in Q2 2008.
Presently, 27% of investors admit to evaluating their mortgages less frequently than once a year.
The Young Index data for Q3 2009 points to investors sitting tight the average length of time that respondents expected to retain individual property assets stood at 12 years, up from an average of 10 years in Q3 2008.
Neil Young, CEO of Young Group, said: “Young Group’s research suggests that investors are fully aware of the constricted conditions in the mortgage market 57% cited difficulties in obtaining mortgage funds as the principal barrier to investment property acquisitions. It seems they may be jaded by current lending conditions and have taken their eye off the ball when it comes to tracking the mortgage market.