Rise in Portfolio Landlords in 2024 Buy-to-Let Market

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.

Portfolio Landlords Are Likely to Expand Their Property Portfolio This Year

The buy-to-let market is preparing for renewed confidence over the next 12 months, according to the latest Paragon Bank Portfolio Landlord Report data, with many portfolio landlords looking to expand in 2024.

Portfolio landlords own multiple residential properties as part of their investment portfolio. These investors often view property investment as a long-term strategy. Managing diverse properties requires a keen understanding of the property market, financing, and property management. For that reason, those considering becoming a portfolio landlord for the first time may want to consult a guide to property investment to ensure they stay on the right track.

Find Out More: Check out our guide on how to build a property portfolio if you’re looking to purchase multiple properties. You may also want to use our rental income calculator to work out how much money you’ll make from any property.

RWinvest Awards

Only £30,000 Deposit Required

15% deposit secured for next 10 units only!

How Many Landlords Are Looking to Expand Their Investments in 2024?

Nearly 37% of portfolio landlords plan to expand their property portfolios this year. The majority, 55%, intend to finance these acquisitions by releasing equity from existing properties, while 58% plan to use their existing capital, as revealed in Paragon’s Portfolio Landlord Report 2024, based on a survey of almost 400 landlords owning four or more properties across the UK.

The data highlights that 69% of those expanding their portfolios follow a deliberate strategy, 60% respond to long-term demand for rental properties, and 50% incorporate property acquisition into their retirement plans.

The survey further indicates that 61% of landlords will opt for a mortgage when purchasing, 39% plan to buy outright, and 52% prefer acquiring terraced homes, followed by 46% for semi-detached houses and 26% for individual flats.

In total, 36% of portfolio landlords plan to maintain their current property levels, while 21% are considering reducing the size of their portfolios.

Richard Rowntree, Managing Director of Mortgages at Paragon Bank, had the following to say about portfolio landlords in 2024:

“Portfolio landlords are optimistic about the future of the buy-to-let market and are looking to take advantage of the opportunities that arise in 2024. We are committed to supporting portfolio landlords with a range of specialist products and services, including flexible and competitive remortgage options.”

Find Out More: Learn more about property investment with our guide to buy-to-let and how to invest in property.

Completed, Furnished 2-Bed Apartment in Prime L1

We are now welcoming offers on this city centre property in a previously sold-out development. Get in touch and get your offer in.

What Type of Properties Are Portfolio Landlords Targeting?

The survey revealed that portfolio landlords aim for properties with higher yields, such as houses in multiple occupations or those convertible to HMOs.

As per the findings, 21% of portfolio landlords plan to buy HMOs, and 20% of properties have the potential for HMO conversion. HMOs are dwellings rented to at least three individuals sharing facilities like a kitchen or bathroom.

Rowntree continues: “Portfolio landlords are experienced and savvy investors who know how to maximise their returns by targeting properties that offer higher yields. HMOs are one of the most attractive options for portfolio landlords, as they can generate more income per property and reduce the risk of void periods.

Like HMOs, Shawbrook Bank revealed that landlords view city centre apartments as a lucrative investment opportunity as more tenants look to rent properties that are close to their offices. We have also added a useful tool for people in Wales, namely the RWinvest Wales Stamp Duty Calculator!

For a full overview of the current UK property market, take a look at our 2024 buy-to-let area guides:

- Buy-to-Let Property in Derby
- Buy-to-Let Property in Dudley

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.