Just over two-fifths (43%) of landlords are reluctant to expand their portfolios in the next year due to a lack of funds, the rise in interest rates, and government intervention such as the renters reform bill, reveals Landbay’s latest survey.
Three-in-10 (32%) do intend to buy property in the next 12 months, with 38% of those wanting to build their portfolio citing an increase in the number of tenants for this, and 34% being swayed by a potential drop in house prices.
One-quarter of landlords (25%) were undecided on their future — although some said they were not actively looking but, if opportunities arose, they might consider further purchases.
The majority of those intending to buy are portfolio landlords, with 44% owning 11 or more properties and 26% possessing between four and 10.
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 39% in the North and just 23% in London and the South.
Rob Stanton, business development director at Landbay (pictured above), commented: “Despite the various pressures BTL landlords are facing, there is still appetite for further house purchases.
“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.
“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.”
