The majority of buy-to-let (BTL) landlords have been focused on growing their property portfolios in the past 12 months, according to new research from The Mortgage Lender (TML).
In total, 52% of residential BTL landlords added to their property portfolios in the past 12 months, with 25% having added a single property and a further 27% adding multiple.
Looking ahead to the next 12 months, expansion was on the agenda for more than half of BTL landlords.
Almost three in 10 (26%) landlords planned to add another single property to their roster, and another 26% planned to add multiple properties.
The majority (74%) said they were confident in the residential property market for the next 12 months ahead.
Residential landlords were keen to diversify their portfolios across different property types (21%) and regions across the UK (21%), while 20% added to their portfolio because they wanted to buy a property with a better Energy Performance Certificate (EPC) rating.
While many grew their portfolios, there were some landlords selling properties, with 31% having sold one or more in the past 12 months and 33% planning to do so in the next year.
This was due to concerns over remortgaging due to rising interest rates (35%), followed by concerns over falling house prices (28%).
In addition, 23% sold a property in the last year in order to buy another that was a better investment.
Chris Kirby, head of key accounts and specialist distribution at The Mortgage Lender, said: “BTL plays an important role in the residential property market, ensuring that there continues to be a good supply of quality and well-maintained rental properties to meet consumer demand.
“Last year’s high inflationary and interest rate environment saw unsettled confidence levels among prospective homebuyers, though for residential landlords our research shows they have not been as discouraged.
“Many are taking opportunities to grow their portfolios, and with rates reducing, average rents increasing, and house price growth predicted, landlords have good reason to be optimistic.
“It certainly paints a positive picture and highlights the continued interest in BTL as an asset class.
“For those landlords who are looking to grow their portfolios, it’s important to seek advice to ensure they are accessing the best possible opportunities in the coming year.”
