This is a significant rise compared to Landbay’s last survey at the end of last year in which 32% said they would buy
44% of landlords intend to buy property in the next 12 months, according to Landbay’s latest landlord survey.
This is a significant rise compared to Landbay’s last survey at the end of last year in which 32% said they would buy.
Over six out of 10 of the landlords intending to buy said their main reason was to build a property portfolio; 31% said it was because of a rise in the number of tenants. This compared to 26% in Landbay’s last survey. 12% based their intentions on a potential decline in house prices.
Landbay said that most landlords who will buy are portfolio landlords, with 40% owning 11 or more properties and 42% having between four and 10 properties; however, smaller landlords are also looking to buy, with 19% owning one to three properties.
Landlords in some parts of the country were more confident than others. A higher proportion of landlords in the South East (28%) said they were intending to buy another property in the next 12 months but just 13% said they would do so in London. Landlords’ confidence levels in the Midlands, the East of England, and in the North were similar, with just under a quarter in each area saying they would buy.
Meanwhile, the survey found that 16% of landlords were undecided on their future plans, although this group was smaller than in the last survey in which a quarter of landlords said they were unsure.
40% said they were not looking to buy property. Just below 30% said they were looking to sell some of their properties over the next 12 months. This group expressed concerns about fluctuations in mortgage interest rates, difficulties in evicting tenants and landlord taxation.
Rob Stanton, Landbay’s sales and distribution director, said: Despite the various pressures faced by landlords, there is still an appetite for further house purchases. The rise demonstrates the continued attractiveness of BTL as a long-term investment strategy, which is supported by the strong demand for rental properties.