According to a study by Landbay, approximately 40% of buy-to-let landlords have expressed their intentions to grow their property portfolios

Posted on Tuesday, 4 July, 2023

A significant portion of buy-to-let landlords, around 40%, have expressed their intentions to expand their property portfolios within the next year, according to a study conducted by Landbay. The driving force behind this growing trend appears to be the high levels of tenant demand in the market.

The research reveals that 35% of respondents cited the increase in the number of tenants as the primary reason for considering further property acquisitions, marking an increase from the previous survey’s figure of 30% in the fourth quarter. Conversely, 33% of participants mentioned the potential decline in house prices as a factor, a decline from the previous survey’s figure of 54%. This could suggest that house prices may not be falling as rapidly as initially anticipated.

Among the landlords surveyed, those with 11-20 properties displayed the strongest intention to expand their portfolios, with more than half (54%) planning to do so. Additionally, 40% of landlords with over 20 properties shared the same sentiment, along with a similar number of landlords who owned two or three properties in their portfolio (44%).

These findings are derived from the latest Landbay quarterly survey, which delves into the perspectives and intentions of existing landlords across various topics. The survey aims to uncover the key factors influencing landlords and their outlook on the future of the buy-to-let market.

Paul Brett, Landbay’s Managing Director of Intermediaries, highlighted the continued appeal of high rental yields and emphasized that while house prices have remained more resilient than expected, some landlords are still enticed by the potential opportunities in the sales market.

Contrary to predictions of a stagnant buy-to-let market with landlords exiting the industry, this data indicates that landlords are actively capitalizing on available opportunities. However, the study acknowledges the presence of landlords who remain undecided, possibly influenced by broader market conditions or the unfavorable regulatory environment for landlords.

Brett emphasized the importance of supporting these undecided landlords and pledged Landbay’s commitment to innovation and expanding their product offerings to cater to a wide range of landlord requirements.