More than four out of 10 buy-to-let landlords (41%) plan to expand their portfolio in the next 12 months, the latest Landbay survey reveals.
In total, 35% of the 1,127 landlords surveyed say the main reason for purchasing additional properties is an increase in the number of tenants.
Meanwhile, 33% of respondents say a potential drop in house prices is the main driver.
This is down from 54% from the Q4 survey, potentially pointing to house prices not falling as fast as people originally thought.
The strongest intention came from landlords with 11 to 20 properties, with more than half (54%) saying they plan to expand their portfolio.
While 40% landlords with more than 20 properties shared the same sentiment, so did those with two or three properties in their portfolio (44%).
The findings are revealed in the latest Landbay quarterly survey, which questions existing landlords on a range of topics to find out their attitude and intentions.
The survey uncovers the key issues facing landlords and their thoughts on the future of the BTL market.
Landbay’s managing director, intermediaries Paul Brett, says: “Once again high tenant demand serves as a key driver for landlords to consider expanding their property portfolio.
“And while house prices have remained more robust than some landlords previously predicted, high rental yields are clearly still tempting some to explore the sales market.
“Rather than the buy-to-let market languishing and lots of landlords exiting as some commentators have suggested, this data shows landlords are still seizing the opportunities available.
However, Brett adds that ‘we mustn’t forget’ those that are undecided due to ‘the state of the wider market or the anti-landlord environment we find ourselves in’.
He also says it is important for the industry to ‘rally behind these landlords’ by offering them support.
