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Buying Spree! Vast majority of portfolio landlords have bought property

No fewer than 88 per cent of portfolio landlords have added to their portfolios in the last six months, despite market uncertainty.

A survey of 1,000 landlords by Shawbrook bank adds that 25 per cent of portfolio landlords intend to invest in an additional property in the next year, with 22 per cent looking to invest in multiple units.

A substantial number of those looking to add at least one property to their portfolio were looking to diversify by location (39 per cent) while 37 per cent were actively exploring different types of residential property. 

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In addition, 26 per cent of portfolio landlords said they are turning their attention towards student housing and 21 per cent were looking at the retirement housing market.

The research comes amid ongoing concerns of high-demand and low-supply in the UK’s rental market, with demand for rental homes 51 per cent above the five year average, and the number of available homes 30 per cent below average in September 2023.

Shawbrook’s research, however, highlights a cohort of professional landlords continuing to invest and add quality rental stock to the market. 

Among those said they were diversifying their property portfolios, close to a third said they had done so to respond to tenant demand, while 28 per cent said they had done so to prioritise more energy efficient buildings.

In addition, of the 88 per cent who said they were planning to add at least one property to their portfolio, over a third wanted to capitalise on good deals currently in the market, with 35 per cent already having capital ready to invest.

A Shawbrook spokesperson says: “Whilst the property market remains challenging, it’s encouraging to see professional landlords continuing to invest and seek opportunities to diversify.

“Our research has shown that a significant number of landlords have taken proactive steps to expand their portfolios, while responding to demand to add quality, energy efficient rental stock to the market for renters.

“Looking ahead, it will be important for buy to let landlords to explore external financing options and lean on specialist lenders. To continue meeting buyer needs in a sustainable way, astute landlords will need to keep thinking one step ahead, adapting their strategies to adjust to the rapidly changing real estate landscape.”

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    Not so surprised, but the ‘ mom & pop’ landlords with 1-3 properties are the majority of us, and it’s us that are selling up 🫣 . The portfolio guys will not be interested in housing our evicted, ‘ complicated’ tenants.

    Richard LeFrak

    Great point Simon, it will be interesting to see how the larger portfolio guys get on when they cannot refuse benefit claimants. As a landlord with 11 I am now fully focused on quality tenants and once my last crackpot has been booted out I will never rent to UC claimants again.

     
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    I wonder what their definition of a portfolio landlord is?

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    4 or more.

     
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    If its 4 or more that's me. Selling another one next week, sold one last year & another one going on the market in January!

     
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    Intend, expect and looking to do are not purchases. I've spoken to other Landlord's, estate agents and they say buying, no matter who, is down, not stopped just down.
    More Landlords are selling than buying. The profit is not there.
    In 2018 with my ex-wife we had 13 buy to lets. She has sold all hers and I have sold 2 and WILL put another one on the market in the Spring.
    Once that house is sold that will leave 5 houses left.

     
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    I spoke to an agent in August in east London. They hadn't sold one property to a landlord this year. I am not convinced of all these lenders talking the market up.

     
  • George Dawes

    They should invest in a strait jacket while they’re at it

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    It may not be possible to generalize their conclusions to all portfolio landlords as their sample may not have been a representative one.

  • Nic  Kaz

    Headlines like this are gobbled up by the politicians who brush off landlords concerns and give them backing to say ‘there’s plenty of landlords about’. But portfolio landlords buying one or two of the large number of offloaded BTL properties on the market won’t solve the increasing problem of less homes for more tenants.

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