The buy-to-let specialist lender says 37% of landlords with four or more homes propose to boost their portfolios, with the majority of them planning to fund purchases by releasing equity from other properties in their portfolio (55% of BTL owners), or using existing capital (58%).  

Its survey, called Portfolio Landlord Report 2024, finds that 69% of BTL owners planning to add properties will do so as part of a portfolio expansion strategy, 60% are driven by long-term demand for rental property, while 50% will make this move as they prepare for retirement.  

It adds that 61% of landlords will buy with a mortgage and 39% will buy outright.  

The report points out that 52% of investors prefer to purchase terraced homes, 46% semi-detached homes and 26% individual flats.  

Overall, 36% of portfolio landlords say they will maintain portfolios at current levels, while 21% are looking to reduce the size of their portfolios.  

Paragon Bank managing director of mortgages Richard Rowntree says: “Portfolio landlords are optimistic about the future of the BTL market and are looking to take advantage of the opportunities that arise in 2024.   

“One of the ways they can do this is by remortgaging their existing properties, mortgaged or unencumbered, and releasing equity to fund new purchases.   

“This can help them diversify their portfolios, increase their rental income, and secure their long-term financial goals.”  

The survey also points out that portfolio landlords are targeting properties that offer higher yields, such as houses in multiple occupation, or properties that can be converted to this type of rental.   

It finds that 21% of portfolio landlords intend to buy houses in multiple occupation and 20% will purchase properties that can be converted into this type of property.   

Rowntree adds: “Portfolio landlords are experienced and savvy investors who know how to maximise their returns by targeting properties that offer higher yields.   

“Houses in multiple occupation are one of the most attractive options for portfolio landlords, as they can generate more income per property and reduce the risk of void periods.   

“However, houses in multiple occupation also require more management and compliance, which is why portfolio landlords need a specialist lender who can understand their needs and provide tailored solutions.”  

Paragon’s Portfolio Landlord Report 2024 surveyed 390 portfolio BTL investors in December.