Resurgence in the Buy-to-Let Market?
5th July 2023
Confidence in the buy-to-let market is on the rise. According to the latest Landbay landlord survey, a significant number of buy-to-let landlords (41%) are planning to purchase more properties in the next 12 months. This positive outlook can be attributed to several factors, including a rise in the number of tenants. Compared to the previous survey, 35% of respondents cited increasing tenant demand as their main motivation for further investments, highlighting the consistent growth potential in the rental market. This begs the question as to why we are seeing this shift in confidence and these are our key findings:
Changing Perceptions on House Prices
While concerns about a potential drop in house prices still exist, the survey suggests a shift in sentiment. Only 33% of respondents expressed worries about declining house prices, down from 54% in the previous survey. This indicates that landlords perceive house prices to be more resilient than initially anticipated, making the market more attractive for future investments.
Driving Forces for Portfolio Expansion
Among landlords with larger property portfolios, the intention to expand is particularly strong. More than half (54%) of landlords with 11-20 properties are planning to grow their portfolio. Encouragingly, 40% of landlords with over 20 properties share the same sentiment. Interestingly, a similar number of landlords with two or three properties (44%) also plan to capitalize on the market’s opportunities.
Landlord Attitudes and Future Outlook
The Landbay quarterly survey covers a range of topics and provides insights into the thoughts and attitudes of landlords. High tenant demand emerges as a significant driver for portfolio expansion. While some landlords may consider exploring the sales market due to the relatively robust house prices, rental yields remain attractive, reinforcing the appeal of the buy-to-let market.
Despite the cooling housing market in the UK, confidence in the buy-to-let market continues to grow. The Landbay landlord survey highlights the intentions of buy-to-let landlords to expand their property portfolios, driven by increasing tenant demand and shifting perceptions of house prices. With a significant proportion of landlords planning further investments, the buy-to-let market shows resilience and potential for sustained growth.
Are you considering expanding your portfolio? Speak to a member of the team today and receive free expert advice to help you make informed, data driven decisions.
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