Thousands of existing landlords are planning on increasing their portfolio through finance as the housing market weakens with more than four out of 10 telling buy-to-let lender Landbay that they intend to pick up more property in the next 12 months.
The Landbay landlord survey also revealed that the main reason for considering buying by 35% of respondents is the increase in the number of tenants – up from 30% of respondents towards the end of last year.
While 33% of respondents said a potential drop in house prices this is down from 54% last time, pointing to house prices not falling as fast as people originally thought.
The strongest intention came from landlords with 11-20 properties, with more than half (54%) planning to expand their portfolio.
While 40% landlords with more than 20 properties shared the same sentiment so did almost the same number of those with two or three properties in their portfolio (44%).
Paul Brett (main picture), Landbay Managing Director, Intermediaries, says: “Once again high tenant demand serves as a key driver for landlords to consider expanding their property portfolio.
“And while house prices have remained more robust than some landlords previously predicted, high rental yields are clearly still tempting some to explore the sales market.”
And he adds: “Rather than the buy-to-let market languishing and lots of landlords exiting as some commentators have suggested, this data shows landlords are still seizing the opportunities available.
“We mustn’t forget those that are undecided though, bogged down by the state of the wider market or the anti-landlord environment we find ourselves in.
“For those that are still undecided, it’s important we all rally behind these landlords.
“We’re playing our part through constant innovation and expanding our product line to help meet a broad range of landlord requirements.”