Despite interest rate hikes battering investor confidence, the UK’s portfolio landlords remain focused on expanding their property portfolios, research from Shawbrook finds.

Its poll of more than 1,000 residential landlords reveals that 88% of those with five or more properties had added to their portfolios in the last six months, with 25% planning to invest in an additional property within the next year, and 22% looking to purchase multiple properties.

This is in contrast to smaller landlords (those with between one and four rental properties), with just 58% having bought a property in the last six months.

Many of those looking to add at least one property to their portfolio want to diversify by location (39%), while 37% are actively exploring different types of residential property. In addition, 26% of portfolio landlords are turning their attention towards student housing and 21% are looking at the retirement housing market.

Fears

Fears have re-surfaced about landlords selling rental property due to rising mortgage costs, however, Shawbrook’s research finds that this cohort of savvy professional landlords are continuing to invest and add quality rental stock to the market. Among those diversifying their property portfolios, 33% had done so to respond to tenant demand, while 28% wanted to prioritise more energy efficient buildings.

Emma Cox (pictured), MD of real estate, says while the property market remains challenging, it’s encouraging to see professional landlords continuing to invest and seeking opportunities to diversify.

She adds: “Looking ahead, it will be important for buy-to-let landlords to explore external financing options and lean on specialist lenders. To continue meeting buyer needs in a sustainable way, astute landlords will need to keep thinking one step ahead, adapting their strategies to adjust to the rapidly changing real estate landscape.”

Main pic credit: Shutterstock/Ewelina W/