Landlords still have the appetite to buy property despite recent changes to stamp duty on additional investment properties, according to new research from Landbay.
Following the Budget, 27% of landlords told Landbay they are still looking to purchase properties. Among those willing to buy, there was an equal split between landlords with 4-10 properties and those with portfolios of 11-20 (31% each).
77% own their properties and portfolios through a limited company structure.
The main reason given for pushing ahead with purchases was a desire to build a property portfolio (56%). Nearly two-in-10 landlords said it was because of the increase in tenant demand, while 13% based their intentions on a potential increase in house prices.
Nearly a quarter said they did not know their purchase plans yet, while half of landlords stated that they did not intend to purchase.
Landlords with rental properties in the capital were most likely to be weighing up buying additional properties in the next 12 months (34%), followed by those in the North West (20%).
To help landlords looking to purchase, Landbay recently expanded its limited-edition range to include both remortgage and now new purchase options too – along with rate cuts across its buy-to-let product range. Landbay also announced the launch of its new product transfer offering, increasing the options available to brokers and their landlord clients.
Rob Stanton, sales and distribution director at Landbay, said: “Even with the changes announced to stamp duty, there is still clearly an appetite among landlords to grow and purchase additional properties. While there are undoubtedly those focusing on what they have right now, we have certainly seen landlords remaining active in the market and capitalising on the investment opportunities that remain.
“While house prices on average have remained robust, we know this isn’t the picture in all areas of the country. Given the complex residential market we find ourselves in, landlords are working with knowledgeable local brokers to identify opportunities and are pushing ahead – factoring in the increase in stamp duty into their negotiations. In turn, those brokers have access to a variety of lenders – including Landbay – who are ready and willing to lend, and continue to innovate to help them meet the demands of their clients.”
