Traditional lets retain appeal
Among landlords considering expansion, long-term retirement and investment planning was the primary motivation (43.7%), followed by strong tenant demand (17.2%), belief that property represents good value (16.1%), and expectations of house price growth (11.5%).
The traditional single-let residential property remains the preferred vehicle for those looking to invest, favoured by 48.2%. Properties requiring refurbishment ranked second at 18.3%, followed by holiday or short-term lets (11%), HMOs (5.5%), student accommodation (4.3%), corporate lets (3.7%), and new-build properties (3.7%).
“Despite years of headlines predicting the demise of the private landlord, the reality is that buy-to-let remains an incredibly strong long-term investment and, importantly, half of landlords themselves still believe this to be the case,” said Marc von Grundherr (pictured right), director at Benham and Reeves.
He added that the issue was not a loss of faith in property, noting that almost two-thirds of landlords intend to maintain their existing portfolios and that long-term investment planning is the primary motivation among those looking to expand.
Von Grundherr said the operating environment for landlords had become substantially less attractive, with almost eight in 10 believing the proposition is worse than it was five years ago, leaving very few willing to increase their exposure.