One in seven landlords intend to expand their buy-to-let portfolios in 2020, according to research, with the North West emerging as the most tempting region.

The study for Precise Mortgages found more than one in five landlords (22 per cent) plan to buy in the North West, beating the South East and Yorkshire & The Humber, which 16 per cent of landlords are targeting for new properties. 

Regions reporting a higher proportion of buyers than sellers in the next 12 months included the East and West Midlands plus the South West and North East.

More than two out of three (68 per cent) of buyers plan to fund their next purchase with a buy to let mortgage, according to the research.

Less than a fifth (18 per cent) will release equity from existing properties to buy more rental properties, although 23 per cent of landlords with more than 11 properties plan to fund purchases this way. 

Brokers continue to dominate the market – almost 73 per cent of landlords used a mortgage broker or intermediary to arrange their last BTL mortgage. Just a fifth went direct to a lender. 

Landlords with six to 10 properties were the most likely to use brokers at 79 per cent while a third (29 per cent) of landlords with one property dealt directly with a lender.

Alan Cleary, managing director of Precise Mortgages, says: “The increasing professionalisation of the buy to let market means landlords are becoming more focused and selective in where they buy properties and how they fund their purchases.

“Recent rate cuts across the buy to let market are highlighting the opportunities to increase portfolios and profitability as well as underlining the need for expert advice from brokers particularly among landlords with bigger portfolios.”