More than half of buy-to-let landlords intend to purchase new properties in the next 12 months, research from Landbay has revealed.
The research found 52 per cent of respondents intend to expand their portfolios this year.
This represents a “significant” increase on Landbay’s previous research conducted following the Autumn Budget where just 27 per cent of respondents said they planned to purchase more properties.
Landbay sales and distribution director, Rob Stanton, said: “While there are those that try to talk down the BTL sector and focus solely on the obstacles, it is fantastic to see many landlords are still looking at the opportunities.
“Whether it be high tenant demand, strong rental yields or viable investment opportunities up and down the country, landlords are setting their sights on growing their portfolios — which is fantastic news for the one-in-five households that rely on the private rented sector.
“BTL lenders — including Landbay — continue to demonstrate that they are ready and willing to lend to support landlords and their ambitions.
“Furthermore, the sector is supported by tremendous advisers who are well placed to help landlords of all sizes to identify growth areas and navigate both their local market and the wider sector amid changing policy, legislation and economic conditions.
“Continued innovation from lenders and expertise from advisers is the winning combination landlords need to expand with confidence.”
While landlords plan to buy three more rental properties on average, some are more ambitious, planning to buy as many as 10 properties this year.
Intention was found to be “spread across the BTL sector”.
The biggest intention came from non-portfolio landlords with less than four mortgaged properties, with nearly a quarter saying they will expand their portfolio in the coming year.
Strong intention was also observed among larger landlords with portfolios of between 16 and 30 properties – 22 per cent of whom intend to expand.
The biggest proportion of those looking to buy is landlords with properties in the South East, followed by London, and the North West.
The research also revealed that 64 per cent of landlords say they will factor in the stamp duty increase into their negotiations and just over half (52 per cent) intend to purchase homes that require little to no modification to meet future EPC deadlines.
tom.dunstan@ft.com
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