Landlords Eye Expansion as House Prices Nose Dive

The possibility of a dip in house prices is spurring a significant number of buy-to-let landlords to consider expanding their portfolios. Latest findings from Landbay indicate that nearly a third (32%) of these landlords are eyeing a property purchase in the upcoming 12 months, with another 34% pondering over increasing their holdings due to the prospect of decreasing property prices.

The data uncovers that a large chunk of these prospective buyers are portfolio investors. Specifically, 44% of them have a substantial ownership of 11 properties or more. Meanwhile, 26% possess between four and 10 properties.

On the smaller end of the scale, the research also highlights that three out of every 10 landlords, or 30%, own a more modest one to three properties and are on the lookout for new acquisitions.

From a regional perspective, the Midlands and the East of England are witnessing heightened interest, with 46% of the current landlords in these regions intending to make a new property purchase within the year. In contrast, London and the South exhibit a more subdued intent, with only 23% of landlords expressing a similar aspiration.

Of note, the study found that 25% of the landlords were still mulling over their plans, not actively pursuing but open to future acquisitions if the right opportunity presented itself.

Meanwhile, a significant 43% of landlords expressed no intention of buying property in the near future. The reasons cited ranged from financial constraints to concerns over rising interest rates and legislative changes, particularly the Renters Reform Bill.

Commenting on the findings, Rob Stanton, Landbay’s Business Development Director, said, “Despite the various pressures buy-to-let landlords are facing, there is still appetite for further house purchase.”

Stanton further elaborated, “We know there is a big demand for rental property and this is one of the reasons landlords are actively looking to expand their portfolios. They are also keeping an eye on falling house prices and other landlords selling up.” Offering insight into regional trends, Stanton added, “While it is true that higher interest rates are putting off some landlords, for others there are opportunities out there. This is more noticeable in the Midlands and the North of England, with the South, typically more expensive, proving less popular for property purchase.”