The BTL sector remains an attractive long-term investment despite market pressures
![More landlords plan to buy properties – Landbay](https://cdn-res.keymedia.com/cdn-cgi/image/w=1000,h=600,f=auto/https://cdn-res.keymedia.com/cms/images/us/077/0270_638531011888186895.jpg)
Nearly half, or 44%, of landlords intend to buy property in the next 12 months, a significant increase from 32% at the end of last year, according to Landbay’s latest survey.
More than six out of 10 landlords intending to buy said their main reason was to build a property portfolio, while nearly a third, or 31%, cited an increase in the number of tenants as their motivation, up from 26% in the last survey. Around 12% of respondents based their intentions on a potential drop in house prices.
Landbay reported that most of the landlords who intend to buy are portfolio landlords, with 40% owning 11 or more properties and 42% owning between four and 10 properties. However, smaller landlords are also looking to purchase, with 19% owning one to three properties.
Regional differences in landlord confidence were notable in the Landbay survey. In the South East, 28% of landlords said they planned to buy another property in the next 12 months, compared to only 13% in London. Confidence levels in the Midlands, the East of England, and the North were similar, with just under a quarter in each area indicating they would buy.
The survey also revealed that 16% of landlords were undecided on their future plans, a decrease from the previous survey, in which a quarter of landlords were unsure.
A sizeable group of landlords, 40%, said they were not looking to buy property. Just under 30% expressed intentions to sell some of their properties over the next 12 months, citing concerns about fluctuations in mortgage interest rates, difficulties in evicting tenants, and landlord taxation.
“Despite the various pressures faced by landlords, there is still an appetite for further house purchases,” said Rob Stanton (pictured), sales and distribution director at Landbay. “The increase demonstrates the continued attractiveness of buy-to-let as a long-term investment strategy, which is supported by the strong demand for rental properties.”
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