In a recent survey conducted by Landbay, it has been found that more than four out of 10 buy-to-let landlords (41%) are gearing up to expand their property portfolios in the coming 12 months. This insightful survey sheds light on the intentions and sentiments of 1,127 landlords, exposing the main drivers behind their decision-making process.
Among the surveyed landlords, a substantial 35% stated that the primary reason for acquiring additional properties is the burgeoning number of tenants. As rental demand continues to soar, landlords see potential in expanding their holdings to meet this need.
Surprisingly, 33% of respondents identified a potential drop in house prices as the primary motivation for portfolio expansion. However, this figure marks a noticeable decline from the previous quarter’s survey, where 54% of landlords believed that house prices would plummet. This indicates that the anticipated decline in property prices might not be as steep as initially speculated.
Delving further into the survey results, the strongest inclination for expanding their portfolios emerged among landlords who currently possess 11 to 20 properties. A staggering 54% of them expressed their plans to add to their holdings, reflecting their confidence in the market’s potential.
Yet, it wasn’t just the larger landlords with more than 20 properties who were looking to expand; 40% of them shared the same sentiment. Even landlords with two or three properties in their portfolio exhibited a positive outlook, with 44% of them considering portfolio expansion.
Paul Brett, the Managing Director of Intermediaries at Landbay, attributes the growth in portfolio expansion to the high demand for rental properties. He notes that the robustness of house prices has been better than what some landlords had previously anticipated, but the allure of high rental yields still entices some to explore the sales market.
Contrary to predictions of a decline in the buy-to-let market and mass landlord exodus, the data from this survey highlights that landlords are still actively seizing opportunities. However, Brett cautions that there are still undecided landlords who are wary of the current market conditions and the anti-landlord sentiment prevailing in some circles.
In light of these findings, Brett emphasizes the importance of industry support for landlords. He urges stakeholders to rally behind them and provide the necessary assistance to navigate through these challenging times.
The Landbay quarterly survey not only provides a glimpse into the attitudes and intentions of landlords but also sheds light on the key issues facing the buy-to-let market. As the landscape continues to evolve, these insights become invaluable for both landlords and industry players seeking to understand the future of the buy-to-let market.