In spite of growing speculation about landlords’ intentions in the UK property market, a recent survey by The Deposit Protection Service (DPS) shows that a majority of those planning to purchase an additional investment property aim to do so within the next two years.
The DPS polled over 2,000 landlords and found that 10% plan to expand their portfolio. Among these, 60% stated they could take action in the next two years. Furthermore, 21% of those seeking to purchase within this timeframe are considering buying in areas other than where they currently reside, with 70% specifically interested in acquiring a terraced house.
Matt Trevett, managing director at The DPS, said: “Although the economic pressures affecting most sectors will inevitably influence the strategies of buy-to-let property owners, it’s interesting that most landlords planning to grow their portfolios are considering doing so over the next two years.”
Paul Fryers, managing director at Zephyr Homeloans, added: “Financial pressures on landlords may mean they look further afield to buy property to suit their own budgets and to find the best rental yields.
“Although our buy-to-let customers invest in properties all over the UK, we have seen particularly high activity recently across East Anglia, the North West, the South East as well as Yorkshire and the Humber.”
The DPS carried out the survey in conjunction with the launch of its interactive online Annual Rent Index report, which outlines rental figures and trends across England and Wales for 2022.
The report shows that Yorkshire and Humberside offered the most affordable rents last year, averaging £614 per month, or 24.7% of the average regional monthly salary.
In contrast, the South East, where average monthly rent reached £1,014, constituted 35.61% of the average regional wage, making it the least affordable region outside London.
London, with an average monthly rent of £1,541 or 44.51% of the city’s average monthly wage, remains the priciest rental market.
