A majority of landlords grew their property portfolios last year, with more set to do so over the coming 12 months, data from The Mortgage Lender shows.
In total, 52% of buy-to-let residential owners added to their portfolios in 2023, with 25% buying a single property and a further 27% adding multiple homes, according to a survey from the specialist lender.
It adds that over the coming year, 26% of landlords plan to add another single property to their roster, while another 26% plan to add multiple properties.
The survey says: “This may be attributed to positivity in the market, with 74% confirming they are confident in the residential property market for the next 12 months ahead.”
It points out that 31% of landlords increased their investment due to tenant demand, while 25% said they grew their portfolio because they had spare capital at their disposal.
The study adds that 21% of investors wanted to diversify their portfolios across different property types and regions across the UK, while 20% added to their portfolios because they wanted to buy a property with a better energy performance certificate rating.
The reports says that 31% of landlords sold one or more of their properties over the last 12 months, with 33% planning to do so in the next year.
Concerns over remortgaging properties due to rising interest rates was the top reason to sell, among 35% of landlords, while 23% said they sold a property in order to buy another that was a better investment.
The Mortgage Lender head of key accounts & specialist distribution Chris Kirby says: “BTL plays an important role in the residential property market, ensuring that there continues to be a good supply of quality and well-maintained rental properties to meet consumer demand.
“Last year’s high inflationary and interest rate environment saw unsettled confidence levels among prospective homebuyers, though for residential landlords our research shows they have not been as discouraged.
“Many are taking opportunities to grow their portfolios, and with rates reducing, average rents increasing and house price growth predicted, landlords have good reason to be optimistic.
“It certainly paints a positive picture and highlights the continued interest in BTL as an asset class.”
