Over a third (36 per cent) of UK landlords plan to expand their portfolios in the next 12 months, data from Market Financial Solutions has revealed.
This is in contrast to the 9 per cent of landlords who intend to reduce the number of buy-to-let properties they own during the same time period.
Some 54 per cent of landlords expect house prices to rise in the next 12 months, with 39 per cent saying they think prices will remain largely the same.
Market Financial Solutions CEO, Paresh Raja, said: “It is encouraging to see landlords expressing such confidence in the UK buy-to-let market, with many actively looking to expand their portfolios.
“This reflects the resilience of the sector and the continued demand for rental properties despite much speculation around landlords selling up.
“However, the risks identified in our research demonstrate the need for landlords to avoid complacency when managing their portfolios.
“New regulations, economic fluctuations, and affordability concerns for renters will likely all play a role in shaping landlords’ investment strategies in the months ahead.
“For lenders and brokers, the data serves as an important reminder that, while interest rates are falling and market conditions are improving, landlords will continue to need support to make informed decisions about their portfolios.”
However, despite the discovered optimism, the survey demonstrated that affordability, economic instability, and regulation remain notable concerns for landlords.
Market Financial Solutions found the biggest concern for respondents was renters ability to pay their rent, which was mentioned by 41 per cent.
This was ahead of domestic political or economic instability, that was mentioned by 35 per cent, global political or economic instability, 28 per cent, and increased regulation in the BTL market, 27 per cent.
Meanwhile, the concerns that were mentioned the least included limited availability of finance options, only mentioned by 19 per cent, and falling property prices or a downturn in the property market, 15 per cent.
tom.dunstan@ft.com
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