A survey by a specialist property broker has revealed that 60% of buy-to-let landlords plan to increase their property portfolios in the next six months.
The study, conducted by Mortgages for Business, also shows that 95% of landlords are lending on their current portfolios.
Landlords Keen to Buy says Mortgage Lenders
The survey found that impressive yields, across a variety of investment property types, are causing the plans to expand, from the 251 property investor respondents.
According to the survey, investors wish for more diverse property portfolios, causing the prediction of a 29% rise in purchases of houses in multiple occupation (HMOs).
The amount of multi-unit freehold blocks to be bought is expected to increase by 19%, with semi-commercial and commercial property purchases also estimated to rise by 15%.
These predicted buys are on top of the 82% respondents claiming that they were also contemplating purchasing at least one ordinary buy-to-let property.
Furthermore, 45% of landlords said that they are considering remortgaging a property in the next three-to-six months.
David Whittaker, Managing Director of Mortgages for Business, explains: “With buy-to-let mortgage rates at historic lows, this strategy may well prove prudent in protecting them against future interest rate rises.
“Of those who are not looking to remortgage, we must surmise that some will be keen to hand onto their existing reversion rates for as long as possible. It will be interesting to see whether the situation changes as the year goes on. Accordingly, the next survey will include a question about recent remortgaging activity.”1
Just 3% of landlords stated that they are going to reduce the size of their portfolios in the next six months, a decrease from 6% six months ago.
The research also reveals a preference among landlords to choose five-year fixed rate agreements, with 34% of investors doing do.
The number of respondents suggesting that lenders could do more to help property investors has dropped by 10% from last October, to 58% in the latest survey.
Competitive pricing and a rising number of products available are thought to be the reasons behind this increase in buyer confidence.