A recent survey by specialist lender Landbay shows a significant rise in landlord confidence, with nearly half (44%) of respondents indicating their intention to buy property within the next 12 months. This marks a notable increase from Landbay’s last survey at the end of last year, where only 32% expressed plans to purchase property.

Drivers of Increased Investment

Among the landlords planning to buy, over 60% cited the primary reason as building their property portfolio. This desire for expansion reflects a robust confidence in the rental market’s potential for long-term returns. Additionally, nearly a third (31%) pointed to an increase in tenant numbers as a motivating factor, up from 26% in the previous survey. Another 12% of landlords are considering new purchases based on the anticipation of a potential drop in house prices.

Portfolio Landlords Leading the Charge

The survey highlights that portfolio landlords are the most active in the market. About 40% of those planning to buy own 11 or more properties, and 42% have between four and ten properties. Smaller landlords, those with one to three properties, also show interest, making up 19% of the prospective buyers.

Confidence among landlords varies significantly across different regions. In the South East, 28% of landlords plan to buy another property in the next year, contrasting with only 13% in London. Confidence levels in the Midlands, East of England, and the North are similar, with just under a quarter of landlords in these areas indicating intentions to invest.

Uncertainty and Concerns

While a positive trend is evident, not all landlords share the same level of optimism. About 16% remain undecided about their future plans, a decrease from the previous survey’s 25%. Conversely, 40% of respondents are not looking to buy any property, and just under 30% are considering selling some of their properties over the next year. This group cited concerns over mortgage interest rate fluctuations, difficulties in evicting tenants, and landlord taxation as their main reasons for selling.

Landbay’s Perspective

A spokesperson from Landbay commented on the survey findings, stating: “Despite the various pressures faced by landlords, there is still an appetite for further house purchases. The increase demonstrates the continued attractiveness of buy-to-let as a long-term investment strategy, supported by the strong demand for rental properties.”

Survey Details Lacking

However, Landbay has not disclosed specifics about when the survey was conducted or the number of landlords contacted, which could be crucial for evaluating the robustness of these findings.

Conclusion

The survey by Landbay paints an optimistic picture for the buy-to-let market, with a significant portion of landlords planning to expand their portfolios in the coming year. This trend highlights a sustained confidence in the rental market’s profitability, despite ongoing challenges such as fluctuating mortgage rates and regulatory changes. As the market evolves, both prospective and current landlords will need to stay informed and strategically navigate these dynamics to capitalize on emerging opportunities.

Source: Property Notify