44% of landlords intend to buy property in the next 12 months, according to Landbay’s latest landlord survey.
This was a significant jump compared with Landbay’s survey at the end of last year, in which only 32% said they would buy.
More than six out of 10 of those intending to buy said their main reason was to build a property portfolio, while 31% said it was because of an increase in the number of tenants, compared to 26% in Landbay’s last survey.
A smaller proportion (12%) based their intentions on a potential drop in house prices.
One landlord who intended to buy said: “I think we may see an increase in house prices, I am building my property portfolio.”
Most landlords who were looking to buy were portfolio landlords, with 40% owning 11 or more properties and 42% having between four and 10 properties.
However, smaller landlords are also looking to purchase, with 19% owning one to three properties.
A higher proportion of landlords in the South East (28%) said they were intending to buy another property in the next 12 months, but only 13% said they would do so in London.
Landlord confidence levels in in the Midlands, the East of England, and in the North were similar, with just under a quarter in each area saying they would buy.
The survey revealed that 16% of landlords were undecided on their future plans, but this group was smaller than in the last survey, in which a quarter of landlords said they were unsure.
Two-fifths (40%) said they were not looking to buy property, and just under 30% were looking to sell some of their properties over the next 12 months.
This group expressed concerns about fluctuations in mortgage interest rates, difficulties in evicting tenants and landlord taxation.
Rob Stanton, sales and distribution director at Landbay, said: “Despite the various pressures faced by landlords, there is still an appetite for further house purchases.
“The increase demonstrates the continued attractiveness of buy-to-let as a long-term investment strategy, which is supported by the strong demand for rental properties.
“We are committed to providing innovative solutions that meet the evolving needs of both landlords and brokers.
“By combining a growing appetite for investment with our expanding product range, Landbay is well-positioned to support the continued growth of the buy-to-let sector.”
