One of the reasons why buy-to-let landlords are actively seeking to expand their investment portfolios is the substantial demand for rental properties in the market. 78% of buy-to-let landlords are building their portfolios, with 38% citing an increase in the number of tenants and 34% affected by the potential decline in property prices. They are also keeping an eye on price falls and the selling activities of other landlords.
The survey reveals that the majority of those intending to buy properties are portfolio landlords, with 44% owning 11 or more properties, 26% owning 4 to 10 properties, and approximately 30% owning 1 to 3 properties. These figures indicate that buy-to-let landlords have already established a significant portfolio and aim to continue its expansion.
Despite facing various pressures, landlords in the buy-to-let sector maintain a desire to further purchase properties. Rob Stanton, Director of Business Development at Landbay, notes that there are relatively more purchasing opportunities in the central and northern regions of England, whereas the southern regions generally have higher property prices and fewer buying opportunities. Therefore, while higher rates might deter some landlords, opportunities still exist for others.
Regionally, a higher proportion of existing landlords in the central and eastern regions of England (46%) indicate their intention to purchase another property in the next 12 months. This is followed by 39% in the northern region, while London and the southern region are at 23%. This suggests that buy-to-let landlords consider different regional opportunities and risks when making investment decisions.
For landlords not considering property purchases, they attribute their decision to reasons such as lack of funds, rising interest rates, and government interventions, including policies like the Renters' Reform Bill. These factors have impacted their investment decisions.