Buy- To-Let Landlords Growing Portfolios

Buy-to-let landlords growing portfolios

New research² indicates that more than half (52%) of buy-to-let (BTL) landlords have been actively expanding their property portfolios over the past year, with 25% acquiring one property and an additional 27% acquiring multiple properties.

Looking at the next twelve months, 26% intend to acquire a single property, while another 26% plan to expand their portfolios further by acquiring multiple properties. This optimistic outlook may be fuelled by confidence in the residential property market, with 74% expressing positivity for the next 12 months.

The research also delved into the motivations driving portfolio expansion. The leading factor was increased tenant demand, cited by 31% of respondents, followed by having available capital (25%). Diversification across property types and regions was also a priority for many landlords, with 21% aiming to achieve this. Additionally, 20% sought properties with better Energy Performance Certificate (EPC) ratings.

While growth is prevalent, a notable portion of landlords have been selling properties. In the past year, 31% have sold one or more properties, with 33% planning to do so in the coming year. Concerns regarding remortgaging due to rising interest rates topped the list of reasons for selling (35%), followed by worries about declining house prices (28%). Additionally, 23% sold properties to reinvest in better opportunities.

²The Mortgage Lender, 2024

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.