If you’re a landlord who is considering expanding your property portfolio, you are not alone. According to a survey from Landbay, 44% said they are looking to invest in property in the next 12 months. *
This is an increase of 12% compared to the same survey conducted 12 months prior. In fact, over six out of ten landlords planning to buy said they were doing so to expand their portfolio. *
Confidence is key
The fact that so many landlords are considering expanding their property portfolios is a testament to the rental market's current strength.
One of the primary reasons for landlords to be confident is the strong demand for rental properties. This demand is expected to continue growing in the coming years, providing landlords with a steady stream of potential tenants.
Plus, as property prices rise, property values appreciate. This gives landlords the opportunity to increase rental income and maximise their return on investment.
The benefits of expanding your portfolio
Increased cash flow
One of the main benefits of expanding your property portfolio is the potential for increased cash flow. By purchasing more buy-to-let properties, you could generate more rental income each month.
You might use this income to help offset any mortgage payments and expenses associated with maintaining the properties.
Property appreciation
Property appreciation is another significant benefit of expanding your portfolio because your total return on investment should increase as the value of your property rises over time.
As properties become more valuable, landlords build more equity, giving them more options to reinvest in more properties or negotiate better mortgage terms.
Although house prices have remained relatively flat over the last 12 months the first half of 2024 saw house prices rise, across the whole of the UK, and its anticipated that they are on track to have increased by 2% by the end of the year**. Further, between June and July Halifax suggests the average home grew in value by 0.8%.
Diversifying your investments
Growing your property portfolio also allows you to diversify your investments. By spreading your assumed risk across multiple properties in different locations, you can help to protect yourself from market fluctuations and unforeseen events that may impact an individual property.
Leveraging
You may be able to use your existing properties to help buy new ones. By using the equity in your current properties as a deposit or collateral for a new loan, you may be able to expand your portfolio without having to raise significant additional funds upfront.
How your agent can help
Working closely with a local agent can help you expand your property portfolio efficiently. With our detailed understanding of local market trends, rental yields, and landlord regulations, we can offer valuable insights and strategic advice.
Its important to understand your requirements so we can assist you in identifying exciting investment opportunities, negotiating deals, and managing your properties efficiently.
