fbpx

Landlords in the midlands most likely to increase portfolio

Jake Carter

March 2, 2020

buyers

Landlords based in the midlands were recorded as the most likely to increase their portfolio size, a study conducted by BVA BDRC shows.

The research outlines that 24% of landlords in the East Midlands and 22% in the West Midlands plan to purchase more properties in the next 12-months.

Meanwhile, 8% of landlords in South West and 9% in Central London intend to purchase more properties within the same timeframe.

The data shows that overall, only 14% of landlords intend to purchase property, with the average preparing to buy three.

Looking at property type, 52% of those looking to expand their portfolio intend to do so by purchasing a terraced house.

This was followed by semi-detached properties at 32% and flats at 26%.

Furthermore one in four landlords are targeting HMOs, according to the research.

Nearly two thirds, 63% of landlords plan to fund their next purchase with a buy-to-let mortgage, while 17% intend to do so through releasing equity on existing properties, and 18% said they would purchase a property outright.

Richard Rowntree, managing director of mortgages of Paragon, said: “The proportion of landlords looking to purchase new property has been largely consistent over the past two years, but we are seeing regional variations and also a greater propensity for portfolio landlords to invest in property.

“Portfolio landlords have adopted a number of strategies to adapt to the tax and regulatory changes of recent years and we’re seeing trends such as these landlords buying stock from smaller-scale participants as they exit the market, or targeting higher yielding properties, such as HMOs.”


Sign up to our daily email