Buy-to-let property purchasing intentions revealed by survey of over 2,000 landlords by The DPS
UK’s largest protector of deposits also unveils online, interactive Annual Rent Index report
Despite increased speculation about landlords’ intentions in the UK property market, a recent survey by The Deposit Protection Service reveals that the majority who intend to buy another investment property are looking to do so during the next two years.
The survey of more than 2,000 landlords revealed that one in ten respondents are currently intending to expand their portfolio, with 60% of that group saying they may do so within the next two years.
21% of those looking to buy within two years said that they were considering buying in a different area from where they live, with 70% saying that they were specifically looking to buy a terraced house.
Matt Trevett, Managing Director at The DPS, 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.
"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.”
UK’s largest protector of deposits also unveils online, interactive Annual Rent Index report
Despite increased speculation about landlords’ intentions in the UK property market, a recent survey by The Deposit Protection Service reveals that the majority who intend to buy another investment property are looking to do so during the next two years.
The survey of more than 2,000 landlords revealed that one in ten respondents are currently intending to expand their portfolio, with 60% of that group saying they may do so within the next two years.
21% of those looking to buy within two years said that they were considering buying in a different area from where they live, with 70% saying that they were specifically looking to buy a terraced house.
Matt Trevett, Managing Director at The DPS, 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.
"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.”
Paul Fryers, Managing Director at Zephyr Homeloans, which helped organise the survey and is also part of the Computershare Group, said: “Financial pressures on landlords may mean they look further afield to buy property to suit their own budgets and to find the best rental yields.
“Although our buy-to-let customers invest in properties all over the UK, we have seen particularly high activity recently across East Anglia, the North West, the South East as well as Yorkshire and the Humber.”
Annual Rent Index report
The DPS conducted the survey to coincide with the launch of its new, interactive online Annual Rent Index report, which details rental figures and trends across England and Wales during 2022.
The report shows that Yorkshire and Humberside had the most affordable rents last year.
Average monthly rents in the region were £614 by the end of the year (a £32 or 5.5% increase from £582 in 2021), which represented 24.7% of the average £2,460.08 monthly regional salary.
By contrast, average rent in the South East had reached £1,014 by the end of 2022: a £53 or 5.52% increase from £961 in 2021.
This represented 35.61% of the average regional monthly wage (£2,869.25), making the South East the least affordable region to rent outside London.
In London itself average monthly rents were £1,541 by the end of 2022: a £160 or 11.58% increase from 1,381 since 2021.
This figure represented 44.51% of the city’s average £3,487.92 monthly salary.
The DPS’ report also reveals average rents per property type as well as comparing average rent figures between 2012 and 2022.
Region Q4 2021-Q4 2022 Rent Increase (%) Rents as proportion of average salaries
Yorkshire and Humberside 5.5 24.74%
South East 5.52 35.61%
Wales 5.93 26.84%
East 7.02 35.12%
East Midlands 7.03 27.32%
South West 7.19 34.50%
West Midlands 8.46 28.43%
North West 8.99 27.68%
North East 9.57 24.87%
London 11.58 44.51%
Scotland 12.02 26.70%
A link to the report is here: https://www.depositprotection.com/news-insights/annual-rent-index-2022/
Published: 12 June 2023
