Buying intention among landlords has rebounded following last year’s Autumn Budget with more than half intending to purchase new properties in the 12 next months, research from Landbay has revealed.
Speaking to the buy-to-let (BTL) lender, 52% of landlords said that they intend to expand their portfolios this year.
This is a significant jump from Landbay’s previous survey following the Autumn Budget, where less than a third (27%) said they planned to purchase more.
Last year’s Budget announced an almost immediate increase in Stamp Duty on additional investment properties.
Now, nearly two thirds of those intending to buy (64%) said they will factor in the Stamp Duty increase into their negotiations.
Just over half (52%) intend to purchase homes that require little to no modification to meet future Energu Performance Certificate (EPC) deadlines.
While landlords plan to buy on average three more rental properties, some respondents were much more ambitious, planning to buy as many as 10 or more properties this year.
Intention was well spread across the BTL sector, with the biggest intention coming from non-portfolio landlords (less than four mortgaged properties) – at nearly a quarter – and from larger landlords with portfolios of between 16 and 30 properties (22%).
The biggest proportion of those looking to buy was landlords with rental properties in the South East (25%), followed by London and then the North West of England.
Rob Stanton, sales and distribution director at Landbay, said: “While there are those that try to talk down the BTL sector and focus solely the obstacles, it is fantastic to see many landlords are still looking at the opportunities.
“Whether it be high tenant demand, strong rental yields or viable investment opportunities up and down the country, landlords are setting their sights on growing their portfolios – which is fantastic news for the one-in-five households that rely on the private rented sector.”
He added: “BTL lenders – including Landbay – continue to demonstrate that they are ready and willing to lend to support landlords and their ambitions.
“Furthermore, the sector is supported by tremendous advisers who are well placed to help landlords of all sizes to identify growth areas and navigate both their local market and the wider sector amid changing policy, legislation and economic conditions.
“Continued innovation from lenders and expertise from advisers is the winning combination landlords need to expand with confidence.”
