A third of landlords are looking to expand their portfolios in the next year, as rising house prices and improved rental yields lead to higher levels of confidence in the market.
Research by Shawbrook Bank found that 34 per cent of landlords said they were planning to buy at least one property within the next 12 months, while 14 per cent said they were planning on buying more properties than they had initially planned.
Despite the challenges of the pandemic, and property prices being at unprecedented levels, this report found there two thirds of respondents (67 per cent) were confident house prices would continue to grow in 2022.
This is reflected in the fact that 13 per cent of landlords said they were planning to buy in new locations. Of these, 36 per cent said they were planning to buy in urban locations, while 30 per cent are considering more rural locations.
The north of England is proving particularly popular as 23 per cent of those landlords intending to extend their portfolio, are planning to buy in northern regions.
The race for space also means that as well as different locations, landlords are considering alternative property types. A total of 12 per cent said they were looking at different properties, with semi-detached houses (34 per cent) and terraced houses (31 per cent) being the two most commonly cited options.
However despite tenants continuing to favour properties with outside space attached, flats still remain a popular, and the first choice of 27 per cent of landlords.
Shawbrook Bank sales director Emma Cox says: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has stood firm and house prices have continued to soar in price. This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months. Their buying activity and trends show that the market is likely to remain strong over the short term.
“With 2021 announced as the ‘busiest year’ for the housing market according to Zoopla, despite recent falls in transactions, it’s clear that the market has rebounded from the lows of the pandemic. As supply continues to be low, it’s unlikely that we’ll see house price growth slow significantly and as we move into January next year following the seasonal slowdown over Christmas, property investors will be seeking further opportunities to expand their portfolios.”