In the past 12 months, 52% of residential landlords who have used finance have expanded their property portfolios, with 25% acquiring one additional property and another 27% acquiring several.
MULTIPLE PROPERTIES
The trend of expansion remains high on the agenda for over half of the buy-to-let landlords, with a quarter (26%) aiming to add one more property to their collection and an equal percentage (26%) planning to acquire multiple properties.
Despite some pessimistic headlines recently, a significant majority of landlords (74%) express confidence in the residential property market for the upcoming 12 months.
Residential landlords are also showing interest in diversifying their portfolios across various property types (21%) and regions within the UK (21%). Additionally, 20% have expanded their portfolio to include properties with better Energy Performance Certificate (EPC) ratings.
However, some landlords are considering selling due to higher mortgage rates and in an effort to mitigate risks in their portfolios. Nearly one-third (31%) have sold one or more properties in the last year, with a similar proportion (33%) planning to do so in the coming year.
IMPORTANT ROLE
Chris Kirby, Head of Key Accounts and Specialist Distribution at The Mortgage Lender, comments: "Buy-to-let plays a crucial role in the residential property market, ensuring a steady supply of high-quality and well-maintained rental properties to meet consumer demand.
“Last year’s environment of high inflation and interest rates resulted in fluctuating confidence levels among prospective homebuyers. However, our research indicates that residential landlords have remained comparatively undeterred.”
He continues: “Many are seizing opportunities to grow their portfolios. With decreasing rates, rising average rents, and anticipated house price growth, landlords have substantial reasons for optimism.
“This certainly paints a positive outlook and underscores the ongoing appeal of buy-to-let as a valuable asset class.”
