A new survey suggests landlords are more likely to expand their portfolios than reduce them. 

The research – for United Trust Bank – claims 58% of brokers have more landlord clients who want to expand their portfolios than sell properties.

Feedback from brokers who took part in the research was that whilst the BTL market was not as buoyant as it was before interest rates were rapidly increased, there were still opportunities with activity in the market not as poor as often suggested in the media.

When asked if their BTL business had declined in the previous six months, 60% of brokers responding disagreed, and only 32% of brokers said that most of their BTL business was Product Transfers.

However, 61% of brokers felt that landlords with just one property were more likely to exit the market than those with BTL portfolios.

Some 65% of brokers said that landlords expanding their portfolios were often considering more unusual and higher yielding properties including HMOs and Multi Unit Blocks (MUBs).

Over 130 brokers took part in quantitative research and this was followed by calls with individuals to obtain a more detailed understanding of the data collected. 

A spokesperson says: “Brokers are increasingly helping landlords with specialist BTL mortgages either because of the properties they’re buying and refinancing, or their own circumstances. 

“ … Landlords are looking to acquire more unusual types of properties and in locations which may not suit homeowners but nonetheless make great rental properties, for example flats over or next to commercial. These purchases often deliver higher yields than a traditional three bed semi and help to mitigate the higher cost of borrowing.”