A third (34 per cent) of buy-to-let landlords expect to expand the size of their portfolios over the next 12 months, research from mortgage lender Together has revealed.
Together’s report found while 44 per cent of respondents are de-risking and shrinking portfolios, a third are looking to are increase their portfolios.
Elsewhere, while 10 per cent of respondents admitted their reservations about the outlook of their business ahead of 2024, 68 per cent feel optimistic.
Additionally, a quarter of landlords are planning to refinance their properties to support business objectives over the next year.
Together group channel development director, Chris Baguley, said: “The short, sharp shock in interest rates since the Covid years triggered some cautiousness in the commercial market while investors were trying to predict where the peak would be.
“With rates settling, while there is still an overall flattening; activity is returning as the sector reacclimatises to the new environment.”
Opportunities
The research additionally found more than half (58 per cent) of respondents would recommend others invest in the UK commercial property market now despite the events of the past year.
While the research did acknowledged that 16 per cent of commercial landlords are exiting the market, Together stated that doors are “being opened” for a new generation of professional landlords and developers to step in.
These opportunities were found to be particularly prevalent in specific regions, with those surveyed in London, West Midlands and the north west of England expected to buy more properties over the next year.
The mortgage lender described this as an “undeniable opportunity” for landlords, investors and developers to take advantage of specialist finance.
“The sector provides invaluable finance in times of austerity when many mainstream lenders’ appetite to financially support projects tends to wane,” Together explained.
“The winners of 2024 and beyond will be those who are able to seek out new opportunities, spot where best to create value and use the right financing to capitalise on emerging growth sectors,” Baguley added.
tom.dunstan@ft.com
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