Around One In Five Landlords Confident To Invest In Property This Year

Research commissioned by Paragon Bank reveals that for the first time in four years more landlords are planning to expand their portfolios than reduce them.

The survey of close on 900 landlords, carried out by consumer and business insight consultancy, BVA BDRC, shows 19pc are intent on investing in property over the coming 12 months. Landlords with larger portfolios appear to be the most likely to buy, with 31pc of those with 11-19 properties and 28pc of those who manage 20 or more looking to expand.

Conversely, fewer than one-fifth of landlords (17pc) are considering selling at least one of their properties over the course of the next year. This represents a fall from the previous two quarters and heralds a return to the same level seen in Q2 2020, when lockdown restrictions were announced in the UK.

The survey results also bring to light regional differences in planned purchase activity. Above average numbers of landlords with property in the East Midlands (26pc) and North East (24pc) suggest they will invest in the future.

On the other hand, Wales, despite being the region with the largest number of landlords reporting high tenant demand, is most likely to witness property in the private rented sector (PRS) being sold, as 28pc signalled that they aim to offload in the next 12 months.

Richard Rowntree, MD for mortgages at Paragon Bank, commented that the fact that more landlords are considering buying rather than selling is fantastic news. Not only for the property industry but, more importantly, for the tenants themselves. Greater investment in the PRS, he added, results in higher standards, restraint in rent levels as well as more choice for the millions who depend on the private rented sector for flexible, affordable housing.

The role of the PRS, he said, has become increasingly important during the upheaval of the last year as witnessed by the very high levels of demand which have been seen for some time. And it’s great to see landlords respond to this.

Property market unaffected by Brexit

In another recent piece of research, the great majority of landlords say Brexit has not had a negative impact on buy-to-let (BTL). According to a new survey by Intus Lettings, Brexit has failed to blight landlords’ prospects, with more than 80pc believing it has either been a beneficial course of action or has not impacted badly on their particular circumstances.

The findings also show that 56pc of landlords have not deviated from their vote in the 2016 referendum. Although 32pc said they would change their vote now if they could, the overarching consensus maintains that the buy-to-let market is upbeat and unaffected by the UK’s departure from the EU.

Average rental income more than £20,000 per property

Hope McKendrick, Head of Lettings at Intus Lettings, said Brexit had cast a dark shadow over the last few years, causing many people to be concerned as to how it would affect the property market. Yet, she said, it’s uplifting that so many landlords deny that Brexit has had a negative impact on the market. The feeling is reflected in the high demand for property sales and purchases seen across the country.

Hope added that the outlook for next year is also bright, as 25pc of those spoken to said they had every confidence in the prospects for the BTL market over the next 12 months, while 41pc were reasonably optimistic.

The survey of 500 landlords, carried out by One Poll on behalf of Intus Lettings, also revealed that the average rental income per property is more than £20,000, with 14pc of landlords earning over £35,000 per property per year.

Hope concluded by saying their research discovered that, on average, landlords own 2.1 properties each, while 63pc say they intend to buy another property within the next five years, which is good news for the rental sector. The findings show that landlords feel confident about the market, and for tenants, there will be plenty of choice available from which to find their perfect home.

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