A third of BTL landlords looking to buy within next 12 months

Three in ten (32%) buy-to-let landlords intend to buy property in the next year, according to a survey by mortgage platform Landbay.

Almost four out of five of these landlords (78%) said they are building their portfolio, with 38% citing an increase in the number of tenants, and 34% being swayed by a potential drop in house prices.

The majority of those intending to buy are portfolio landlords, with 44% owning 11 or more properties and 26% having between four and ten properties. However, smaller landlords are also looking to purchase, with 30% owning one to three properties.

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 39% in the North but just 23% in London and the South.

One in four landlords (25%) were undecided on their future plans, while 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.

Rob Stanton, Landbay’s business development director, said: “Despite the various pressures buy-to-let landlords are facing, there is still an 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. 

“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.”

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4 Comments

  1. Woodentop

    I wonder what they will do if Labour win next election and Raynor brings in Rent Capping?

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    1. NW.Landlord

      sell up 🙁

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  2. AcornsRNuts

    Rob Stanton daydreaming again.

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  3. LRC10

    We have around 1000 landlord on our books.
    I can assure you that nowhere near “four out of five of these landlords (78%) are building their portfolio”

    I’d actually be surprised if more than 10 are considering.

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