Jul

LATEST: Portfolio landlords to buy more properties as rental demand soars – claim

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Nearly half of landlords with multiple properties plan to expand their portfolio in the next year, bucking the trend of those reportedly looking to sell up.

New research from Handelsbanken reveals that 49% of professional landlords – those owning at least four properties – intend to buy more, while 8% plan to invest in improving the quality of their portfolio.

Despite fears of an economic downturn and the cost of living crisis, only 7% of landlords expect to sell some or all their portfolio, while a third (35%) are keeping their current properties for the next 12 months.

Handelsbanken’s poll of 120 professional landlords finds that many hope to diversify their assets across different sectors and regions, with London seen as the most attractive place to invest (chosen by 53%), followed by the East of England (40%) and the East Midlands (22%).

When it comes to the type of property they have their sights set on, houses come out top (66%), followed by flats (38%), HMOs (34%) and commercial retail (32%). The survey also found that 86% of landlords expect a rise in demand for residential property, with nearly two-thirds (63%) confident that commercial property demand will also increase.

Buoyant

James Sproule (pictured), UK chief economist at Handelsbanken, says: “Landlords are anticipating that a shortage of rental properties will help keep prices buoyant, particularly as working patterns continue to adjust to the post-pandemic world and people seek to move back to big cities, particularly in popular areas such as London, which is also seen to be better placed to ride out the next series of economic challenges and opportunities.

“Landlords went through a tough period following the COVID-19 pandemic, with residential property transactions falling by more than half and business investment contracting. But the sector has survived and is now looking forward.”

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