More landlords planning to buy properties, survey shows
04 June 2024
Nearly half of landlords intend to buy property in the next 12 months, according to Landbay’s latest landlord survey. Forty four per cent said they would invest in property, a significant jump compared to Landbay’s last survey at the end of last year in which only 32% said they would buy.
More than six out of ten of the landlords intending to buy said their main reason was to build a property portfolio. Nearly a third (31%) said it was because of an increase in the number of tenants. This compared to 26% in Landbay’s last survey. Some, (12%), based their intentions on a potential drop in house prices.
One landlord who intends to buy commented: “I think we may see an increase in house prices, I am building my property portfolio.”
Most landlords who will buy are portfolio landlords, with 40% owning 11 or more properties and 42% having between four and 10 properties. But smaller landlords are also looking to purchase, with 19% owning one to three properties.
Landlords in some parts of the country were more confident than others. A higher proportion of landlords in the South East (28%) said they were intending to buy another property in the next 12 months but only 13% said they would do so in London. But landlords’ confidence levels in in the Midlands, the East of England, and in the North were similar, with just under a quarter in each area saying they would buy,
Interestingly, the survey revealed that16% of landlords were undecided on their future plans. But this group was smaller than in the last survey in which a quarter of landlords said they were unsure.
A sizeable group, 40%, said they were not looking to buy property. Just under 30% said they were looking to sell some of their properties over the next 12 months. This group expressed concerns about fluctuations in mortgage interest rates, difficulties in evicting tenants and landlord taxation.
Rob Stanton, Landbay’s sales and distribution director, commented: “Despite the various pressures faced by landlords, there is still an appetite for further house purchases. The increase demonstrates the continued attractiveness of buy-to-let as a long-term investment strategy, which is supported by the strong demand for rental properties.
“We are committed to providing innovative solutions that meet the evolving needs of both landlords and brokers. By combining a growing appetite for investment with our expanding product range, Landbay is well-positioned to support the continued growth of the buy-to-let sector.”
