Approximately 32% of buy-to-let property owners have expressed their intent to make property investments in the upcoming year, even in the face of sluggish returns within the market, according to findings from a recent survey conducted by Landbay.
Among these aspiring investors, an overwhelming 78% are actively expanding their property portfolios. Of this group, 38% attribute their decision to the increasing number of tenants seeking rental accommodations, while 34% are enticed by the potential decline in house prices.
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Rob Stanton, who serves as the Business Development Director at Landbay, commented on these findings, stating, “In spite of the myriad challenges faced by buy-to-let landlords, there remains a strong desire to acquire additional properties. It is evident that there is a substantial demand for rental properties, driving landlords to actively seek opportunities for portfolio expansion. They are closely monitoring the trend of falling house prices and the decisions of fellow landlords who are opting to sell their properties.”
“While it is undeniable that higher interest rates are dissuading certain landlords, there are still lucrative prospects available to others. Notably, this trend is more pronounced in the Midlands and the North of England, whereas the South, typically characterized by higher property costs, is witnessing comparatively less interest in property acquisition,” Stanton added.
The majority of prospective buyers in this group are portfolio landlords, with 44% owning an impressive 11 or more properties, while 26% possess between four and ten properties. An additional 30% have smaller portfolios consisting of one to three properties.
Regional disparities in buying intentions are evident, with a higher percentage of existing landlords in the Midlands and the East of England, at 46%, expressing their desire to invest in more properties in the upcoming year. This figure is closely followed by the 39% in the North. In contrast, just 23% of landlords in London and the South intend to make property acquisitions in the near future.
However, for those landlords who have chosen not to invest further, they have cited several reasons, including insufficient funds, the rise in interest rates, and government interventions, notably the Renters Reform Bill.
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