The UK’s portfolio landlords – those with five or more rental properties – remain largely undeterred in expanding their business in spite of high inflation and interest rates, research from Shawbrook has found.
According to the bank’s latest survey of over 1,000 residential landlords in the UK, 88% of portfolio landlords said they had added to their portfolios in the last six months, with one in four (25%) intending to invest in an additional property within the next year, and one in five (22%) looking to purchase multiple properties.
However, landlords with between one and four rental properties are slightly less bullish, with 58% having added to their portfolio in the last six months.
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 are turning their attention towards student housing and 21% were looking at the retirement housing market.
Among those who said they were diversifying their property portfolios, close to a third (33%) said they had done so to respond to tenant demand, while 28% said they were prioritising more energy efficient buildings.
In addition, of the 88% who said they were planning to add at least one property to their portfolio, over a third (36%) wanted to capitalise on good deals currently in the market, with 35% already having capital ready to invest.
Emma Cox, managing director of Real Estate at Shawbrook, said: “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.”