Buy to let landlords set to grow portfolios – Landbay

More than half of the UK’s buy to let landlords are planning to acquire new properties within the next year, Landbay says.

Its research points to a surge in confidence among landlords, with 52% expressing intentions to boost their holdings.

This marks a big rise from last year’s survey which was carried out after the Autumn Budget, when 27% of landlords planned to purchase additional properties.

The Budget had introduced an increase in stamp duty for investment properties, impacting landlord strategies.

Opportunities for landlords

The lender’s sales and distribution director, Rob Stanton, said: “While there are those that try to talk down the BTL sector and focus solely the obstacles, it is fantastic to see many landlords are still looking at the opportunities.

“Whether it be high tenant demand, strong rental yields or viable investment opportunities up and down the country, landlords are setting their sights on growing their portfolios – which is fantastic news for the one-in-five households that rely on the private rented sector.”

Landbay’s study also reveals that 64% of landlords planning purchases will account for the higher stamp duty during negotiations.

And 52% aim to buy properties that need minimal upgrades to comply with upcoming Energy Performance Certificate (EPC) requirements.

Some landlords want 10 properties

On average, landlords intend to add three properties to their portfolios, though some are more ambitious, targeting up to 10 or more acquisitions this year.

The enthusiasm for expansion spans various landlord types with non-portfolio landlords, with fewer than four mortgaged properties, accounting for nearly a quarter of those planning purchases.

Larger landlords, managing between 16 and 30 properties, represent 22% of the group.

Regionally, the South East leads with 25% of prospective buyers, followed closely by London and the North West.