34% of buy-to-let property investors intend to expand their portfolios in 2022

According to a report for Shawbrook Bank, a third of all landlords are planning to expand their portfolios by at least one property in the year to come. Despite the COVID-19 pandemic causing so much disruption to the economy, house prices have continued to rise and are maintaining record levels, which, in turn, is encouraging landlords to buy with the prospect of high rental yields.

Of the 34% of landlords, 14% said that they predicted that they would buy more properties than they initially intended, indicating strong confidence in the rental market for the future.

Although house prices remain at record levels, there is an expectation that property prices will rise even further in the next 12 months, with 67% of landlords saying they are confident that will happen and therefore prepared to take the risk of further investment.

Not only are landlords willing to add to their portfolios in terms of quantity, but they are also looking to expand into other locations. According to the research, 13% have plans to buy in areas they would otherwise not usually consider. Of those landlords, 30% are planning on investing in properties in rural areas and 36% in urban areas. The most popular area of the UK is proving to be the north of England for rental investment, with 23% of landlords stating they were looking to expand in this region.

Another change is the type of property that rental investors are considering, with alternative property development becoming increasingly popular. Many renters are looking for more outside space due to the lockdowns, resulting in semi-detached (34%) and terraced houses (31%) increasing in popularity as opposed to flats. Flats do, however, remain a favourable investment at 27%.

Sales director at Shawbrook Bank, Emma Cox, said: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has stood firm, and house prices have continued to soar. This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months. Their buying activity and trends show that the market is likely to remain strong over the short term.

“Indeed, with 2021 announced as the “busiest year” for the housing market, according to Zoopla, despite recent falls in transactions, it’s clear that the market has fully rebounded from the lows of the pandemic. As supply continues to be low, it’s unlikely that we’ll see house price growth slow significantly, and as we move into January next year following the seasonal slowdown over Christmas, property investors will be seeking further opportunities to expand their portfolios.”