Skip to content

More Than Half of Buy-to-Let Investors Looking to Grow Portfolio in 2024

Don't miss out on the best new investment deals. Enter your details now to sign up to our mailing list and receive exclusive information straight to your inbox.

    BTL Investors Intentions Show Renewed Confidence in the Property Market

    Over half of buy-to-let landlords expanded portfolios in the past year, with 52% acquiring properties. Looking ahead, 50% plan further expansion, reflecting optimism in the 2024 UK property market.

    Tenant demand and available capital were key motivators. However, 31% of landlords sold properties, citing rising interest rates and concerns about declining house prices as top reasons.

    These findings come from a new study by The Mortgage Lender, analysing landlords’ consensus regarding real estate investing strategies.

    Let’s look at that UK buy-to-rent research in more detail.

    Secure 15% Deposit

    Only 15% deposit needed now, with nothing else to pay until February 2025 on luxury 2-bed apartments.

      Buy-to-Let sticky note

      How Are Buy-to-Let Landlords Acting in the Housing Market?

      New research from The Mortgage Lender reveals that, in the last 12 months, more than half of buy-to-let landlords focused on expanding their property portfolios. Of the residential investors surveyed, 52% increased their property holdings, with 25% acquiring a single property and 27% adding multiple properties.

      Looking forward to the next 12 months, more than half of BTL landlords plan to continue expanding, which speaks volumes about the uplift in affordability in the UK property market in 2024. Specifically, 26% intend to add a single property, while another 26% plan to add multiple properties. This positive outlook may be attributed to renewed confidence in the residential property market, as 74% expressed confidence in its prospects for the following year. Why not read more about some of the best rental yield locations in London with our free guide.

      The research also dove into the motivations behind landlords’ portfolio expansions. The top reason cited was increased tenant demand, influencing 31% of landlords. Additionally, 25% of their portfolios grew due to available capital.

      Residential landlords also showed a keen interest in diversifying their portfolios by exploring different property types (21%) and regions across the UK (21%) as well as some overseas property investment. Furthermore, 20% expanded their portfolios, intending to acquire a property with a better EPC rating.

      How to Build a Property Portfolio, Get Started Now!

      Tips on how to start building your property portfolio with tools for success.

      buy-to-let-red-house

      How Did The Mortgage Lender React to Renewed Investor Confidence?

      Chris Kirby, Head of The Mortgage Lender Key Accounts & Specialist Distribution, reacted to the buy-to-let market news: “BTL plays an important role in the residential property market, ensuring that there continues to be a good supply of quality and well-maintained rental properties to meet consumer demand.

      “Last year’s high inflationary and interest rate environment saw unsettled confidence levels among prospective homebuyers, though for residential landlords, our research shows they have not been as discouraged. Many are taking opportunities to grow their portfolios, and with rates reducing, average rents increasing and house price growth predicted, landlords have good reason to be optimistic.

      “It certainly paints a positive picture and highlights the continued interest in BTL as an asset class.

      “For those landlords who are looking to grow their portfolios, it’s important to seek advice to ensure they are accessing the best possible opportunities in the coming year.”

      Find Out More: To know more about the latest property investments, check out our guides on the safest investments. Alternatively, you may want to explore our article on how to buy a house to rent out.

      Join Our Mailing List

      Sign up to our mailing list today for information on the latest buy to let deals, new property launches, expert insights, and more.

        Why Are Buy-to-Let Landlords Becoming More Active in the Property Market?

        With investors deciding buy-to-let is worth it in 2024, there is an apparent reaction to declining inflation and mortgage rates. By the end of 2023, inflation had fallen to 3.9% following a series of declines throughout Q3 and Q4. This led mortgage lenders to price their products competitively, enticing investors to an otherwise subdued market.

        While inflation rose slightly to 4% at the start of 2024, forecasters expect the Bank of England to lower the base rate multiple times this year, which will help further improve affordability in the housing market.

        While we do not expect property prices to rise this year, buy-to-let investors may still achieve significant returns or capital growth in specific markets. For instance, Savills predicts that the North West buy-to-let market will see returns of 9.2% this year, bolstered by good-value property prices in its major cities like Liverpool and high tenant demand leading to an increase in rent prices.

        Discover More: Keep abreast of the latest regional property insights with our buy-to-let area guides, such as:

        Disclaimer
        Avatar photo
        Author

        Dale Barham

        Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.

        UK