60% of landlords plan to expand their portfolio this year
With demand for rental properties continuing to outstrip supply, the report from specialist mortgage broker Mortgages for Business reveals that 84% of investors looking to expand said they are planning to purchase more houses and flats over the next six month.
Only 3% of investors are planning to reduce their portfolios over the next six months, down from 6% over the last three months.
“Landlord appetite for buying residential property is high,” said David Whittaker, managing director at Mortgages for Business. “This will support the private rented sector and ease the strain on would be renters chasing too few properties.”
More than three quarters of landlords said that lenders need to do more to support them and are looking for buy to let mortgages that cater for more specialist scenarios including more products for holiday lets and more lending to ex-pats.
Just over half of investors who are planning to expand revealed they will need to refinance their existing properties. Of these, 20% are likely to struggle to secure finance because of a lack of equity, reflecting the dearth of high LTV mortgages in the market. Just under 10% of investors revealed they have been asked by lenders to refinance elsewhere
“Landlords are bullishly confident about the prospects of the buy to let market over the next six months. There are a huge number of would-be owners being displaced into the rental market every year, which has kept tenant demand sky high and pushed yields on private rental property over the 6% threshold,” added Whittaker.renting
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