Portfolio landlords most likely to purchase more rental properties
Landlords remain interested in expanding their portfolios despite recent Stamp Duty changes on additional properties, according to new research from specialist buy-to-let lender Landbay.
Following the Budget, 27% of landlords surveyed said they still intend to purchase property. Of those, 31% had portfolios of between four and 10 properties, while another 31% owned 11 to 20.
The majority (77%) hold their rental properties through a limited company structure. The primary motivation for buying was portfolio growth (56%), while 18% cited rising tenant demand, and 13% pointed to expectations of house price increases.
Uncertainty remains for some investors, with nearly a quarter undecided on their purchasing plans, while half said they did not intend to buy.
London-based landlords showed the greatest inclination to expand, with 34% considering purchases in the next year, followed by 20% in the North West.
“Even with the changes announced to Stamp Duty, there is still clearly an appetite among landlords to grow and purchase additional properties,” said Rob Stanton (pictured), sales and distribution director at Landbay. “While there are undoubtedly those focusing on what they have right now, we have certainly seen landlords remaining active in the market and capitalising on the investment opportunities that remain.
“While house prices on average have remained robust, we know this isn’t the picture in all areas of the country. Given the complex residential market we find ourselves in, landlords are working with knowledgeable local brokers to identify opportunities and are pushing ahead – factoring in the increase in Stamp Duty into their negotiations. In turn, those brokers have access to a variety of lenders who are ready and willing to lend, and continue to innovate to help them meet the demands of their clients.”
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