Roughly a Third of Landlords Have Expansion Plans for Their Portfolios
Posted on Friday, 27 October, 2023
In the latest survey by Landbay, 32% of buy-to-let landlords participating in the study expressed their intention to purchase property within the next year.
In spite of consistently elevated interest rates and an atmosphere of uncertainty regarding the government’s long-term intentions for the rental sector, Landbay’s most recent survey reveals that approximately a third of buy-to-let landlords are contemplating an expansion of their presence in the private rented sector (PRS).
Among these landlords, 78% express their intent to grow their property portfolio. A noteworthy 38% point to an uptick in tenant demand, while 34% are enticed by the possibility of a decrease in property prices.
The predominant group of potential buyers comprises portfolio landlords, with 44% of them owning 11 or more properties, and 26% possessing between four and ten properties. Nonetheless, even smaller-scale landlords are exploring property acquisition, as 30% of them own one to three properties.
Regional disparities come into play, with a greater proportion of existing landlords in the Midlands and the East of England (46%) expressing their intention to acquire another property within the next 12 months. This is followed by 39% in the North, while only 23% of landlords in London and the South are inclined to make such purchases.
On the other hand, 25% of landlords remain uncertain about their future plans, with some indicating that they are not actively seeking new properties, but would contemplate purchases if opportunities present themselves.
The survey brings to light that 43% of landlords are not interested in acquiring additional properties. Their primary reasons include a lack of financial resources, the increase in interest rates, and government interventions such as the Renters Reform Bill.
Rob Stanton, Business Development Director at Landbay, commented, “Despite the manifold challenges that buy-to-let landlords currently face, there remains a keen appetite for expanding property portfolios. We are aware of the substantial demand for rental properties, which is a driving force behind landlords seeking portfolio expansion. They are also monitoring the trend of declining property prices and the decisions of fellow landlords to sell their properties.”
“While it is true that elevated interest rates are dissuading some landlords, others are identifying opportunities in the market. This trend is particularly prominent in the Midlands and the North of England, with the South, known for its higher property costs, proving to be less attractive for new acquisitions.”