Despite the current economic climate marked by high inflation and increasing interest rates, many of the UK’s landlords remain largely unfazed and continue expanding their property portfolios. This trend is observed even as these conditions negatively impact buyer confidence in the market.
According to research, these landlords are not just weathering the storm but actively investing in the property market, adding quality rental stock to the market. This demonstrates their adaptability and professional acumen in such a challenging environment.
Landlords continue to seek ways to diversify and grow
The research highlights that 26% of these landlords plan to augment their portfolio size in the forthcoming 12 months. Meanwhile, a majority of 67% have decided to sustain their portfolios at their current sizes.
This group of professional landlords continues to seek ways to diversify and grow, indicating a resilient outlook on the market despite its challenges. Contrary to the widespread conjecture of landlords abandoning the buy-to-let market, the research found that merely 7% plan to curtail their portfolio in 2024.
Navigating rising interest rates and tenant rent
The study also unveiled that 49% of landlords consider the surge in interest rates as a challenge for managing their property investments. Surprisingly, only 37% of landlords confirmed that they had augmented their tenants’ rent over the past year.
A significant 62% of landlords expressed discomfort in raising rents during a period when tenants were already grappling with a high cost of living. However, with the stabilisation of interest rates and mortgage repayments on the horizon, a substantial 69% of landlords expect to hike rents in the upcoming year, potentially leading to improved rental yields.
Disputing the exodus theory
For the better part of the last decade, it has been widely speculated that landlords would exit the buy-to-let market en masse. Contradicting this theory, this data displays that most private landlords are dedicated to sustaining or enlarging their property portfolios.
These findings underscore the lasting appeal of buy-to-let as an investment class, regardless of the increased costs and regulatory complexities many landlords face.
Want personalised advice to help you make well-informed decisions in this dynamic market?
Understanding the buy-to-let property landscape and mortgage options can be complex. Whether you’re a landlord contemplating your next steps or someone seeking more information, please don’t hesitate to contact our team of experts, who will provide personalised advice to help you make well-informed decisions in this dynamic market.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
