Recent findings from Butterfield Mortgages’ independent survey of 2,000 UK adults shed light on the intentions of private landlords in the current property landscape. Contrary to speculation, the study reveals that a significant majority are looking to either maintain or grow their property portfolios in the coming year.
According to the survey, a staggering 26% of landlords who own buy-to-let (BTL) properties are planning to expand their portfolios in the next 12 months. This stands in stark contrast to a mere 7% who are considering downsizing. The data suggests a resilient stance among landlords despite ongoing challenges in the market.
Interestingly, 67% of surveyed landlords aim to retain their portfolios at their current sizes, indicating a prevailing stability in the sector. However, the research highlighted that nearly half of the landlords (49%) expressed concern about managing their property investments amidst the recent surge in interest rates.
One notable insight was that only 37% of landlords reported raising their tenants’ rents over the past year. This decision was met with discomfort by 62% of them, empathizing with tenants grappling with increased living expenses.
Nevertheless, as the interest rates and mortgage repayments appear to stabilize, a significant 69% of landlords anticipate raising rents in the forthcoming year. This shift could potentially lead to improved rental yields in the months ahead.
Alpa Bhakta, CEO of Butterfield Mortgages, emphasized, “Our data challenges the long-standing speculation of mass exodus from the BTL market. The majority of private landlords are steadfast in their commitment to either maintaining or expanding their property portfolios.” Bhakta highlighted the enduring appeal of BTL as an asset class despite the added costs and regulatory complexities faced by many.
The research underscores the resilience and determination of UK landlords, indicating a positive trajectory for the BTL market in the foreseeable future, despite prevailing challenges.