Some 37% of portfolio landlords, those with four or more properties, plan to increase the size of their portfolios in 2024, Paragon Bank research has found.
Many of them will fund the purchases by releasing equity from other properties in their portfolio or using existing capital — 55% and 58% respectively.
69% of those adding property are doing so as part of a portfolio expansion strategy, 60% are driven by long-term demand for rental property, and 50% are doing so as part of their retirement plan.
The survey also showed that 61% of landlords will buy with a mortgage and 39% will buy outright, and that 52% of landlords prefer to purchase terraced homes, 46% semi-detached homes and 26% individual flats.
Overall, 36% of portfolio landlords said they would maintain portfolios at current levels, with one-fifth (21%) looking to reduce the size of their portfolio.
The survey also revealed that portfolio landlords target properties that offer higher yields, such as HMOs or properties that can be converted to HMOs.
According to the survey, 21% of portfolio landlords intend to purchase HMOs and 20% properties that can be converted to HMOs.
Richard Rowntree, managing director of mortgages at Paragon Bank (pictured above), said: "Portfolio landlords are optimistic about the future of the BTL market and are looking to take advantage of the opportunities that arise in 2024.
“One of the ways they can do this is by remortgaging their existing properties, mortgaged or unencumbered, and releasing equity to fund new purchases.
“This can help them diversify their portfolios, increase their rental income, and secure their long-term financial goals."
