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More landlords wish to expand property portfolios


According to a recent survey by specialist mortgage brokers Mortgages for Business, over half of all private sector landlords questioned were aiming to expand their portfolios over the next six months. Of the 55% planning this expansion, around two-thirds would require some form of refinancing. However, nearly three-quarters of those landlords approached during the research stated they
didn’t believe mortgage lenders were doing enough to support property investment.

Survey feedback demonstrated that 43% of landlords were hoping to remortgage, representing a 7% rise from the figures ingathered as recently as six months ago. Interestingly, the survey also
highlighted that around 39% of the landlords questioned had less than £25,000 income (other than money coming in from rent).

After establishing the various figures from the landlord returns, Mortgages for Business went on to analyse likely causes for particular trends. They concluded one of the reasons for desire to increase portfolios resulted from the potentially attractive yields available on residential investments. In the climate of continuing economic uncertainty, private property rentals continue to offer a high gross yield.

Investing in complex property was shown to be far less popular, although just over a quarter of the landlords stated they planned to purchase houses of multiple occupation, with 16% outlining a
preference for multi-unit freehold blocks. A smaller percentage were aiming to buy semi-commercial property (only 11% of those landlords questioned), while the figure was lower still for commercial

Mortgages for Business concluded with the encouraging statistic that only 6% of landlords had indicated they intended trimming their portfolios over the next six months, a proportion that
was equivalent to the figure reported six months ago. Finally, although 45% weren’t planning on expanding their portfolios at all over the next six months, 25% were still planning to remortgage.

Buying Houses since 1972