A vast majority of landlords have revealed their acquisition plans for the year ahead, with the North West expected to be the busiest region, according to new research for Precise Mortgages.
The study by BDRC found more than one in five landlords (22%) plan to buy in the North West, followed by the South East and Yorkshire & The Humber – where 16% of landlords are targeting new properties.
Regions reporting a higher proportion of buyers than sellers in the next 12 months include the East and West Midlands, as well as the South West and North East.
Some 68% of buyers plan to fund their next purchase with a buy-to-let (BTL) mortgage, while just 18% will release equity from existing properties. Demand for mortgages is similar across all portfolio sizes, although 23% of landlords with 11-plus properties plan to release equity.
Brokers continue to dominate the market, with almost 73% of landlords using a mortgage broker or intermediary to arrange their last BTL mortgage, while 19% went direct to a lender. Landlords with six to 10 properties were the most likely to use brokers are 79%, while 29% of landlords with one property dealt directly with a lender.
“The increasing professionalisation of the buy-to-let market means landlords are becoming more focused and selective in where they buy properties and how they fund their purchases.” Alan Cleary, managing director of Precise Mortgages, comments.
“Recent rate cuts across the buy-to-let market are highlighting the opportunities to increase portfolios and profitability as well as underlining the need for expert advice from brokers particularly among landlords with bigger portfolios.”