New research¹ indicates that more than half (52%) of buy-to-let landlords (BTL) have been actively expanding their property portfolios over the past year, with 25% of buy-to-let landlords acquiring one property and an additional 27% of buy-to-let landlords acquiring multiple properties.
Looking at the next twelve months, 26% of buy-to-let landlords intend to acquire a single property, while another 26% of buy-to-let landlords plan to expand their portfolios further by acquiring multiple properties. This optimistic outlook may be fuelled by confidence in the residential property market, with 74% of buy-to-let landlords expressing positivity for the next year.
The research also delved into the motivations driving portfolio expansion for buy-to-let landlords. The leading factor was increased tenant demand, cited by 31% of respondents, followed by having available capital (25%). Diversification across property types and regions was also a priority for many buy-to-let landlords, with 21% aiming to achieve this. Additionally, 20% of buy-to-let landlords sought properties with better Energy Performance Certificate (EPC) ratings.
While growth is prevalent, a notable portion of buy-to-let landlords have been selling properties. In the past year, 31% have sold one or more properties, with 33% planning to do so in the coming year. Concerns regarding remortgaging due to rising interest rates topped the list of reasons for selling (35%), followed by worries about declining house prices (28%). Additionally, 23% sold properties to reinvest in better opportunities.
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¹The Mortgage Lender, 2024
