Over a third of landlords planning to buy

Over a third of landlords plan to purchase at least one more rental property over the next 12 months, according to new research from Landbay.

The lender’s Q3 survey, sent to 2,000 landlords, found 34% are planning to make such an investment which is broadly in line with the 35% who felt this way in the preceding survey.

Of those responding, 17% intend to purchase one property, while 12% plan to purchase between two and three properties.

A further 6% intend to purchase four or more properties.

At the same time, 56% said they did not intend to purchase further properties over the coming year, compared to 52% in the previous survey, while 10% remained undecided.

Landbay’s research found buying ambitions were being supported by the strength of rental yields.

The survey found landlords continue to report a range of gross rental yields, with 33% achieving between 4% and 5.9%, while 20% reported yields between 6% and 7.9%.

A further 14% reported yields between 8% and 8.9%, with 9% achieving yields of 10% or above, demonstrating that a proportion of landlords continue to achieve higher returns despite ongoing costs and wider market pressures.

Rental income also remains an important consideration, with 83% of landlords planning to increase rents over the next 12 months, compared to more than 75% in the previous survey.

The largest proportion (38%) intend to increase rents in line with inflation, while 20% plan increases between inflation and 7%. A further 10% expect to raise rents by less than inflation, with 14.5% planning increases of 7% or more.

Refinancing will continue to play a core role in landlords’ plans, with 38% of respondents

expecting to take a new product with their existing lender when their current mortgage deal ends, while a further 21% anticipate remortgaging to a different lender.

Just over a quarter remain undecided about their next move.

 When asked which factors would most influence these decisions, mortgage interest rates were cited by 34% of respondents, closely followed by the total cost of borrowing at 33%, while product fees were the main consideration for 11%.

“It is encouraging to see an increase in those feeling positive about their own businesses, while more than a third still intend to purchase additional properties over the next year,” said Rob Stanton, sales and distribution director at Landbay (pictured above).

“Of course, these responses were gathered before last week's Budget, which has introduced a further increase in the tax on property income for landlords holding properties in their personal names, and it will be interesting to see whether this changes investment intentions or confidence levels as we move into 2027.

“One area which really stands out is the importance of remortgaging and product transfers - this represents a considerable opportunity for advisers over the next six to 12 months, particularly given the depth and breadth of mortgage products now available.”