Professional landlords remain bullish despite property market fears

UK landlords with at least five rental properties are largely undeterred in expanding their property portfolios, research from Shawbrook has revealed.

Some 88% of portfolio landlords said they had added to their portfolios in the last six months, with one in four (25%) intending to invest in an additional property within the next year, and one in five (22%) looking to purchase multiple properties.

This is compared to smaller landlords (those with between one and four rental properties) who have been less bullish, with just 58% having added to their portfolio in the last six months.

Emma Cox, managing director of real estate at Shawbrook, said: “Whilst the property market remains challenging, it’s encouraging to see professional landlords continuing to invest and seek opportunities to diversify.

“Our research has shown that a significant number of landlords have taken proactive steps to expand their portfolios, while responding to demand to add quality, energy efficient rental stock to the market for renters.”

A substantial number of those looking to add at least one property to their portfolio were looking to diversify by location (39%), while 37% were actively exploring different types of residential property.

In addition, 26% of portfolio landlords said they are turning their attention towards student housing and 21% were looking at the retirement housing market.

Demand for rental homes is 51% above the 5-year average, and the number of available homes 30% below average in September 2023.