Confident landlords eye portfolio expansion

A survey carried out by Shawbrook Bank found that confidence in the market was high, prompting landlords to plan for further investments.

Of the 34 per cent of landlords who said they planned to buy at least one property in the next 12 months, 14 per cent said they were aiming to purchase more properties than they had first planned.

The results follow a recent survey published by research firm BVA BDRC which found that landlord confidence levels were at their highest point in the last five years and tenant demand was soaring. Meanwhile, confidence in rental yields was at its strongest since 2016.

Some 13 per cent of landlords responding to Shawbrook’s survey said they planned to buy properties in a new location while 12 per cent said they were interested in buying a different type of property. Of those looking at new locations, 36 per cent said urban areas were of interest while 30 per cent are looking at rural locations.

The north of England is drawing attention, with almost a quarter of landlords who plan to expand looking to buy in northern regions.

Emma Cox, sales director at Shawbrook Bank, said: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has stood firm and house prices have continued to soar in price. This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months. Their buying activity and trends show that the market is likely to remain strong over the short term.

“Indeed, with 2021 announced as the busiest year for the housing market according to Zoopla, despite recent falls in transactions, it’s clear that the market has fully rebounded from the lows of the pandemic. As supply continues to be low, it’s unlikely that we’ll see house price growth slow significantly and as we move into January next year following the seasonal slowdown over Christmas, property investors will be seeking further opportunities to expand their portfolios.”