Nose diving house prices drive landlords’ expansion plans

A third of (32%) buy-to-let landlords intend to buy property in the next 12 months with a similar amount (34%) being tempted to boost their portfolio by a potential drop in house prices, latest research from Landbay reveals.

The majority of those intending to buy are portfolio investors with 44% owning 11 or more properties and a quarter of those (26%) have between four and 10 properties.

SMALLER LANDLORDS

But smaller investors are also looking to purchase with three in 10 (30%) owning one to three properties.

Turning to the regions, a higher proportion of existing landlords in the Midlands and the East of England (46%) said they were intending to buy another property in the next 12 months. This was followed by the 39% in the North but just 23% in London and the South.

One in four landlords (25%) were undecided on their future plans although some said they’re not actively looking but if opportunities arose they might consider further purchases.

The survey found 43% of landlords were not looking to buy property with the main reasons being lack of funds, the rise in interest rates and government intervention including the Renters Reform Bill.

APPETITE FOR HOUSE PURCHASE

Rob Stanton, Landbay’s Business Development Director, says: “Despite the various pressures buy-to-let landlords are facing, there is still appetite for further house purchase.

“We know there is a big demand for rental property and this is one of the reasons landlords are actively looking to expand their portfolios. They are also keeping an eye on falling house prices and other landlords selling up.”

And he adds: “While it is true that higher interest rates are putting off some landlords, for others there are opportunities out there.

“This is more noticeable in the Midlands and the North of England, with the South, typically more expensive, proving less popular for property purchase.”