Most of them want to expand their portfolios despite challenges in the rental market
Nearly one in three buy-to-let landlords, or 32%, intends to buy property in the next 12 months, results of a recent survey by specialist BTL lender Landbay have shown.
A larger proportion of landlords – around 43% – were not looking to buy property, mentioning lack of funds, the rise in interest rates, and government intervention including the Renters Reform Bill as the main reasons of their disinterest in purchasing another buy-to-let.
Around 25% of landlords were undecided on their future plans, although some said they were not actively looking but if opportunities arose they might consider further purchases.
As for those with purchase plans, the Landbay survey found that almost four out of five of these landlords, or 78%, were trying to augment their portfolio, while 38% cited an increase in the number of tenants and 34% were swayed by a potential drop in house prices.
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Landbay noted that the majority of those intending to buy were portfolio landlords with 44% owning 11 or more properties and 26% had between four and 10 properties. Smaller landlords, who were surveyed, were also looking to purchase with 30% owning one to three properties.
Looking at the regional distribution, a higher proportion of existing landlords in the Midlands and the East of England, at 46%, said they were intending to buy another property in the next 12 months. This was followed by the 39% in the North, and 23% in London and the South.
“Despite the various pressures buy-to-let landlords are facing, there is still appetite for further house purchase,” Rob Stanton (pictured), business development director at Landbay, pointed out. “We know there is a big demand for rental property, and this is one of the reasons landlords are actively looking to expand their portfolios. They are also keeping an eye on falling house prices and other landlords selling up.
“While it is true that higher interest rates are putting off some landlords, for others, there are opportunities out there. This is more noticeable in the Midlands and the North of England, with the South, typically more expensive, proving less popular for property purchase.”
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