Third of BTL landlords seek to expand their portfolio

Almost a third (32 per cent) of all buy-to-let landlords are seeking to expand their property portfolios in the next 12 months, creating new opportunities for alternative property lenders.

A new survey from former peer-to-peer lending platform Landbay found that booming tenant numbers and a potential drop in house prices are among the factors influencing ambitious landlords at present.

78 per cent of landlords said that they are currently building their portfolio with 38 per cent citing an increase in the number of tenants, and 34 per cent being swayed by a potential drop in house prices.

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“Despite the various pressures BTL landlords are facing, there is still appetite for further house purchase,” said Rob Stanton, Landbay’s business development director.

“We know there is a big demand for rental property and this is one of the reasons landlords are actively looking to expand their portfolios. They are also keeping an eye on falling house prices and other landlords selling up.”

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Stanton added that higher interest rates are putting off some landlords, but there are some bright spots for property investors. He noted that there are more BTL opportunities for landlords in the Midlands and the north of England, where property prices aren’t as high as they are in the south.

The majority of those intending to buy are portfolio landlords, with 44 per cent owning 11 or more properties.

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