In the midst of elevated interest rates and ambiguity enveloping the government's roadmap for the rental arena, a recent study by Landbay sheds light on an intriguing trend. It unveils that a significant fraction of buy-to-let landlords, close to one-third, are enticed by the prospects of expanding their presence in the Private Rented Sector (PRS).
Delving into the motivations fuelling this inclination, a robust 78% of these landlords are on a trajectory of portfolio enlargement. The rationale underpinning this trajectory varies, with 38% being propelled by a surge in tenant numbers, while 34% are enticed by the prospects of a potential ebb in house prices.
The landscape of those eyeing additional acquisitions is diverse, spanning seasoned portfolio landlords to the novices in the domain. A substantial 44% among them are the seasoned players with a repertoire of 11 or more properties, followed by 26% who have a portfolio of four to ten properties. Intriguingly, the allure of expanding a portfolio isn't confined to veterans, as 30% of these landlords are at the stage of having one to three properties under their belt.
A geographical dissection of this trend unveils a higher propensity among landlords in the Midlands and the East of England, with 46% voicing intentions of improving their property portfolio in the coming year. This enthusiasm trickles down to 39% in the North, but takes a modest dip to 23% in London and the South.
As we operate in Finchley, we understand there are barriers to overcome in London, and this is why potential landlords here might be hesitant to make a move. If you have any questions or concerns, please let us know, and we’ll be more than happy to assist you.
Alternatively, a quarter of landlords have concerns over future moves in the property market, albeit open to embracing opportunistic acquisitions should they arise. Contrarily, 43% of landlords exhibit no inclination towards property acquisition, with financial constraints, escalating interest rates, and governmental interventions like the Renters Reform Bill being the primary deterrents.
Rob Stanton, Landbay’s business development director, said: “Despite the various pressures buy-to-let landlords are facing, there is still an appetite for further house purchases. We know there is a big demand for rental property and this is one of the reasons landlords are actively looking to expand their portfolios. They are also keeping an eye on falling house prices and other landlords selling up. While it is true that higher interest rates are putting off some landlords, for others there are opportunities out there. This is more noticeable in the Midlands and the North of England, with the South, typically more expensive, proving less popular for property purchase.”
Amidst this evolving activity of the rental market, the role of adept property management is paramount. This is where the expertise of David Harris & Co comes into play. With a rich legacy in aiding landlords in Finchley and beyond, our tailored solutions are poised to navigate the intricacies of property letting with finesse. From astute market analysis, strategic property positioning, to seamless tenant management, our bespoke services are designed to alleviate the hurdles and optimise the rewards of property letting.
In light of the current market dynamics, the support and meticulous services of David Harris & Co are the backbone for landlords aspiring to either augment their portfolios or seamlessly manage their existing assets. Our ethos is rooted in fostering a hassle-free and lucrative property letting service for our clientele amidst the shifting sands of the rental market landscape.
We have assisted many Finchley landlords connect with willing tenants, and we know where these groups are looking for rental accommodation. You can take the stress out of connecting with your ideal tenant by turning to a local lettings agent in Finchley.
If you want to make an informed decision in and around Finchley’s rental market, we are here for you. If you have any questions about the local market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
