Many landlords plan to add to their portfolios

With properties in short supply and both rents and property prices expected to rise further in 2015, albeit at a more moderate rate compared to 2014, buy-to-let is expected to continue to consolidate itself as the investment of choice for many people over the next 12 months.

This is partly due to the dismal returns savers are currently receiving from banks and building societies.

With tenant demand continuing to outstrip housing supply, a number of landlords are planning to add to their UK property portfolios by purchasing homes across the country, according to new research from Platinum Property Partners, the specialist buy-to-let business.

This comes despite the fact that more than half – 52 per cent - of buy-to-let investors believe interest rates will rise.

The research – which surveyed over 500 UK buy to let investors – revealed that while the majority expect an increase, overall 42 per cent believe interest rates will rise by less than 2 per cent.

Only one in ten expect to see interest rates rise by 2 per cent or more.

However, 29 per cent cited a rise in interest rates as their biggest concern for 2015.

The prospect of a rate hike has not deterred many landlords, with 43 per cent of existing landlords intending to grow their portfolio of rental properties next year.

Some 23 per cent intend to expand their portfolio by one property, while 14 per cent hope to purchase two or more rental properties in the next 12 months. Landlords owning Houses in Multiple Occupation (HMOs) for young professionals and key workers have some of the biggest ambitions for 2015, with just over half of them planning to add to their buy-to-let portfolio during 2015. Lettings branch manager of Newman’s in Leamington, Tara Doughty, said: “Our investor landlords are concerned about an interest rate increase in 2015, yet the majority of our clients don’t anticipate that these rises will be dramatic or unaffordable.

“As a result it is our opinion that this sector will continue to grow, with two in five planning to add to their BTL portfolio despite a likely interest rate rise.”

For all your property related enquiries contact: Tara Doughty on 01926 436135 or email [email protected]