More landlords plan 2021 portfolio expansion rather than sell off

Close to 900 landlords in quarter one were asked what their property investment plans were for the coming year and for the first time in more than four and a half years more landlords have expansion plans than those who plan to sell properties. Some 17 per cent of landlords said they planned to shrink their portfolios.

Compared to quarter four, 16 per cent of landlords said they would expand versus 20 per cent who planned to sell properties. And in Q1 2020, the disparity was even greater with 12 per cent saying they had plans to expand compared to 21 per cent who were selling up.

According to the Q1 survey, landlords already managing larger portfolios are most likely to purchase with 31 per cent of those with 11 to 19 properties and 28 per cent of those who manage 20 or more intending on expanding.

Differences in planned purchase activity also exist regionally. Above average proportions of landlords operating in the East Midlands and North East indicated that they will invest in the future, at 26 per cent and 24 per cent respectively.

Despite being the area with the highest proportion of landlords reporting high tenant demand, Wales is most likely to see private rented sector property sold after 28 per cent of surveyed landlords revealed that they plan to divest in the next 12 months.

Richard Rowntree, managing director for mortgages at Paragon, said: “News that for the first time in over four years more landlords are intending on buying than selling is fantastic. This is because not only is it good for the industry but, more importantly, it’s good for tenants. More investment in the private rented sector contributes to higher standards, a moderation of rents and more choice for the millions who rely on the private rented sector for flexible, affordable housing.”