Traditional Lets Retain Appeal
Among landlords considering expansion, the primary motivation is long-term retirement and investment planning (43.7%). This is followed by strong tenant demand (17.2%), the belief that property represents good value (16.1%), and expectations of house price growth (11.5%).
The traditional single-let residential property remains the preferred investment vehicle, favored by 48.2%. Properties requiring refurbishment come in second at 18.3%, followed by holiday or short-term lets (11%), HMOs (5.5%), student accommodation (4.3%), corporate lets (3.7%), and new-build properties (3.7%).
“Despite years of headlines predicting the demise of the private landlord, the reality is that buy-to-let remains an incredibly strong long-term investment. Importantly, half of landlords still believe this to be the case,” said Marc von Grundherr, director at Benham and Reeves.
He also noted that the issue is not a loss of faith in property, as nearly two-thirds of landlords intend to maintain their existing portfolios. Long-term investment planning is the main motivation for those looking to expand. However, von Grundherr highlighted that the operating environment for landlords has become substantially less attractive, with nearly eight in ten believing the proposition is worse than it was five years ago, leading to very few willing to increase their exposure.
