BTL landlords are expanding their portfolio as tenant demand continues to rise
Despite expectation of a mass exodus from the rental market, many landlords are buying even more properties to expand their portfolio, according to the latest Landbay landlord survey.
Results of the lender’s quarterly survey revealed that more than four in 10, or 41% of buy-to-let landlords intended to purchase additional properties in the next 12 months.
A majority, or 54%, of landlords with 11 to 20 properties said they were planning to expand their portfolio, while 40% of landlords with more than 20 properties wanted to do the same. Around 44% of landlords with two or three properties in their portfolio expressed their intent to buy more.
The main reason for considering buying by 35% of the respondents was high tenant demand. A third, or 33%, of respondents cited a potential drop in house prices as the reason for wanting to purchase additional properties.
“Once again, high tenant demand serves as a key driver for landlords to consider expanding their property portfolio,” commented Paul Brett (pictured), managing director of intermediaries at Landbay. “And while house prices have remained more robust than some landlords previously predicted, high rental yields are clearly still tempting some to explore the sales market.
“Rather than the buy-to-let market languishing and lots of landlords exiting as some commentators have suggested, this data shows landlords are still seizing the opportunities available. We mustn’t forget those that are undecided though, bogged down by the state of the wider market or the anti-landlord environment we find ourselves in.
“For those that are still undecided, it’s important we all rally behind these landlords. We’re playing our part through constant innovation and expanding our product line to help meet a broad range of landlord requirements.”
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