Bullish landlords bounce back despite rate rises

Landlords with multiple properties are still expanding their portfolios despite the effects of higher mortgage rates, it has been claimed.

New research from Shawbrook Bank shows that property owners with five or more rentals are undeterred and are adding to their list.

Multiple purchases

According to its latest survey of over 1,000 residential investors in the UK, 88% of portfolio operators said they had added properties in the last six months.

One in four said they were intending to invest in an additional property within the next year, and one in five (22%) were looking to purchase multiple properties.

This is compared to smaller landlords (those with between one and four rental properties) who have been less bullish, with just 58% having added to their portfolio in the last six months.

Diversify

A substantial number of those looking to add at least one property to their portfolio were looking to diversify by location (39%), while 37% were actively exploring different types of residential property.

In addition, 26% of portfolio landlords said they were turning their attention towards student housing, and 21% were looking at the retirement housing market.

A significant number of landlords have taken proactive steps to expand their portfolios.”

Emma Cox, MD of real estate at Shawbrook, says: “Whilst the property market remains challenging, it’s encouraging to see professional landlords continuing to invest and seek opportunities to diversify.

“Our research has shown that a significant number of landlords have taken proactive steps to expand their portfolios, while responding to demand to add quality, energy efficient rental stock to the market for renters.”

Portfolio landlords ‘looking for more properties as tenant demand balloons