Landlords eye portfolio expansion

One in 10 landlords is currently looking to buy additional investment properties, a survey reveals.

The findings from The Deposit Protection Service (The DPS) found that 60% of those landlords anticipate buying within the next two years.

And that’s despite regular media stories speculating over whether landlords are selling up and leaving the PRS.

The poll of more than 2,000 landlords also reveals that 21% of landlords are looking to buy further afield.

It appears that terraced houses are the preferred choice for investment with 70% of respondents expressing an interest in this type of property.

‘Purchasing intentions of landlords across England and Wales’

The managing director of The DPS, Matt Trevett, said: “The survey helps us gain insight into the purchasing intentions of landlords across England and Wales.

“The economic pressures that are affecting most sectors will inevitably also influence the strategies of buy-to-let property owners too, although it’s interesting to note that most landlords who intend to increase their portfolios are considering doing so over the next two years.”

He added: “Our regular surveys of both landlords and tenants mean we can share valuable insight with our customers and the wider industry and, combined with largest database of domestic private rental figures across the UK, help us reveal a detailed picture of trends in the private rental sector.”

The DPS’ interactive online Annual Rent Index

The survey marks the launch of The DPS’ interactive online Annual Rent Index to highlight valuable insights into the regional differences in rental costs.

Yorkshire and Humberside emerged as the region with the most affordable rents in 2022.

By the year’s end, average monthly rents reached £614, marking a 5.5% (£32) increase from the previous year’s average of £582.

This figure constituted 24.7% of the average regional monthly salary of £2,460.

South East experienced higher rental costs

In contrast, the South East experienced higher rental costs, with average monthly rents rising to £1,014 by the end of 2022.

This represented a 5.52% (£53) increase from 2021’s average rent of £961.

Consequently, the South East became the least affordable region to rent outside of London, with average rent accounting for 35.6% of the average regional monthly wage of £2,869.

In London, average monthly rents soared to £1,541 by the close of 2022, reflecting an 11.58% (£160) increase since 2021.

These figures equate to 44.51% of the city’s average monthly salary of £3,487.