Three in 10 (32%) buy-to-let landlords intend to buy property in the next 12 months.
This is according to Landbay’s latest survey which also revealed that almost four out of five of these landlords (78%) said they are building their portfolio with 38% citing an increase in the number of tenants. Some 34% said that a potential drop in house prices was making the buying proposition more attractive.
The majority of those intending to buy are portfolio landlords with 44% owning 11 or more properties and 26% have between four and 10 properties. But smaller landlords are also looking to purchase with 30% owning one to three properties.
Turning to the regions, a higher proportion of existing landlords in the Midlands and the East of England (46%) said they were intending to buy another property in the next 12 months. This was followed by the 39% in the North but just 23% in London and the South.
One in four landlords (25%) were undecided on their future plans although some said they’re not actively looking but if opportunities arose, they might consider further purchases.
The survey found 43% of landlords were not looking to buy property with the main reasons being lack of funds, the rise in interest rates and government intervention including the Renters Reform Bill. (Though in recent days the government’s decision to shelve no fault eviction as part of the bill may impact thinking a little).
Landbay’s business development director Rob Stanton comments: “Despite the various pressures buy-to-let landlords are facing, there is still appetite for further house purchase. 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”.
He adds: “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.”
