Just over one in four buy-to-let landlords are planning to expand their portfolio within the next 12 months, according to fresh research.
With buy-to-let continuing to deliver solid returns that outstrip many other asset classes, a survey by Knight Knox shows that 27% of buy-to-let landlords are currently planning to add to their portfolios in the near term.
The poll of 500 UK landlords by the property investment consultancy found that 27% of respondents are planning to expand their property portfolio in the next 12 months – influenced in part by the stamp duty holiday extension.
Of those looking to invest in property at the moment, 35% say that the stamp duty holiday extension has influenced their decision.
Knight Knox’s commercial director, Andy Phillips, said: “The last 12 months have been a total rollercoaster for the housing market. Lockdown 1.0 temporarily halted activity before Rishi Sunak’s announcement of the stamp duty holiday led to the industry facing one of the busiest periods for a decade.
“For landlords, the incentive has provided a welcome opportunity to purchase more properties while making significant savings. Appetite for rental property is high – particularly given that the financial impact of the pandemic could be affecting people’s plans to purchase – so buy-to-let is a fantastic investment in the current climate.”
The research also found that on average, UK landlords earn over £20,000 net income per year from renting out properties and 88% are feeling confident or very confident about the buy-to-let market outlook for the next 12 months.
Two-thirds of landlords said the pandemic had had no impact on tenancies within their properties and just 4% were planning to reduce their portfolio over the next year.
Phillips added: “The property market plays a crucial role in the country’s economy, so it’s encouraging to see that during times of crisis, the government has been forthcoming with lifelines to help keep the wheels of industry turning.
“As long as developers can continue to bring high quality property to market and landlords have the confidence to invest, the sector will remain buoyant and consumer demand for rental housing can be fulfilled.”
Interesting given what a couple of doom sayers have been putting on hear recently! However, this all looks good as long as there is no price correction. MIRAS anyone?
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Here 😉
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I remember the week following all the completions prior to MIRAS being withdrawn – nothing happened no calls no one through the doors. Then with a bit of a recession soon after, telling all the first time buyers their home was now valued at £30,000 less than the £110,000 they paid.
Mind you they get great stats for skin/hair products only asking 79 people
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Really? A sample of just 500 landlords how reliable can that be? Sounds like the shelter school of statistics to me.
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Oh! really as a doomsayer I wonder how many of these idiot LL are aware of the £9 billion of losses that feckless tenants cause LL every tax year!? Are they aware of the truly horrendous effects of the new Renters Bill. Shrewd LL are getting out of the game or at least moving away from AST letting. Very few of these idiot LL in the survey will have a clue about what I have mentioned. These sort of dopey LL believe if you pick your tenants wisely then everything will operate swimmingly. They couldn’t be more wrong as many of them will have discovered this past year and a half. Massive rent arrears losses that will NEVER be recovered. If a LL cannot easily recover their rental property from feckless rent defaulting tenants nor have RGI on them or a guarantor then such business is far from secure. It is in fact a very risky business model. When it is operating correctly with tenants PAYING their rent on time and in full then BTL is GREAT. Unfortunately this is rarely the case. Many LL have no option but to take on low quality tenants and are then exposed to the full potential fecklessness effects of such tenants. In short there is effectively no real practical protection for LL from feckless tenants. The law is 100% in favour of tenants. A LL might eventually be able to get rid of a feckless rent defaulting tenant but the effects of such are life lasting. I speak from very personal experience. Feckless tenants cause massive financial damage to LL. They can only do this because of the pathetic eviction laws in the UK. If LL wish to ensure they have sufficient resources to defend against feckless tenants then they will need CONSIDERABLE resources and that would be to cover just one feckless tenant eviction. Once used up then what!? Most LL don’t have a magic money tree. Tenants do though. It is called welfare which feckless tenants can always avail themselves of safe in the knowledge that a LL would NEVER be successful in recovering rent arrears from them. I suggest that the LL in the survey are clueless and have no idea of the current risks and the soon to be even greater risks arriving shortly. Despite now being very successful I along with many other LL getting out of the game. That should tell you something!!! The wrong LL were being asked.
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