Get ready for a wave of new buy-to-let landlords! Research from Landbay shows that almost half of landlords are planning to expand their portfolios in the next year. It seems that the buy-to-let market is still attracting investors, despite the challenges of rising interest rates and stricter regulations.

What’s driving the boom?

Landlords are motivated by a variety of factors:

• Building their empire: Over 60% of landlords planning to buy say they’re aiming to build a larger property portfolio.
• Rising demand: Almost a third of landlords cite increasing tenant demand as a reason for buying more properties.
• Potential for lower prices: While not the main factor, 12% of landlords are hoping to capitalise on a potential drop in house prices.

The regions most likely to see a BTL increase

The South East is leading the charge, with 28% of landlords there planning to buy. London, however, is lagging behind with only 13% of landlords looking to expand. The Midlands, East of England, and the North are seeing similar levels of interest, with around 25% of landlords in each region intending to buy.

Are landlords worried about the future?

Yes, some are. A significant 40% of landlords are not looking to buy more properties, citing concerns about:

• Mortgage interest rates: The recent rise in rates has made it more expensive to borrow.
• Eviction difficulties: New rules make it harder to evict tenants.
• Taxation: Landlords face increasing tax burdens.

Key takeaways:

• 44% of landlords are planning to buy property in the next 12 months.
• The main motivations are building a portfolio and responding to rising tenant demand.
• The South East is leading the charge, while London lags behind.
• Concerns about interest rates, evictions, and taxation are deterring some landlords.

The buy-to-let market is showing resilience, with many landlords still seeing it as a profitable investment. However, it’s important to remember that the landscape is changing, and landlords need to be aware of the challenges ahead.