A large proportion of portfolio landlords - those with four or more properties - plan to expand their portfolios in the year ahead, a new survey claims.
The Handelsbanken study shows that 49 per cent of portfolio landlords intend to buy more, while eight per cent plan to invest in improving the quality of their portfolio.
Just seven per cent of landlords expect to sell some or all their portfolio, and a third are committed to retaining their current properties for the next 12 months.
Some 86 per cent of landlord respondents expect a rise in demand for residential property and 89 per cent of landlords questioned expect an increase in yields.
Nearly three-quarters said their plans to buy are focused on expanding into different parts of the property market – the most attractive are houses (66 per cent), followed by flats (38 per cent) and HMOs (34 per cent).
Just over half of landlords on the acquisition trail said their reason for buying was simply feeling bullish about the market.
James Sproule, UK chief economist at Handelsbanken, says: “Recent house price growth shows how property has shown its resilience against economic doom and gloom and the cost-of-living squeeze.
“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.
“The 2022-23 financial year is forecast to see a further softening in residential property transactions as vendors wait for the right buyer rather than accept any perception of loss in value.”
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