Over half of UK landlords 'plan to expand portfolios'
Survey finds that 55 per cent of landlords are looking to expand their portfolios in the next six months
Landlords look set to build on the successes they enjoyed last year, with a survey conducted by Mortgages for Business revealing that 55 per cent plan to expand their portfolios in the first half of 2013.
With demand for tenancies high throughout Britain and the lettings game continuing to prove a profitable investment opportunity, it seems that the majority of landlords are ready to continue taking advantage of the promising market conditions by purchasing fresh assets.
According to David Whittaker, managing director at Mortgages for Business, the fact that house prices remain unaffordable for many Brits will also play a role in the growing popularity of renting among the population as landlords benefit from the trend.
"Tenant demand for residential property is ballooning thanks to the lack of mortgages available to first-time buyers," he said.
"Every month more and more would be buyers are being forced to rent, and this is pushing up demand to astronomical levels, producing very attractive gross yields for landlords as a result.
"It is not surprising, then, that well over half of investors want to expand their portfolios to take advantage of these high yields."
The survey shows that not only are investors planning to expand their portfolios in the next six months, but they are also thinking of widening the scope of the properties that they own.
Of the landlords who are looking to purchase new holdings, 26 per cent are hoping to acquire houses in multiple occupation while 16 per cent are targeting multi-unit freehold blocks.
Yet while more complex buy-to-let properties are associated with higher yields, investors still need to take measures to protect their financial interests if they want to enjoy long-term success.
Landlord insurance policies can play a vital role in this process, covering the cost of damage that could otherwise threaten the profitability of an investor's portfolio.