introduction
Despite ongoing economic uncertainty, a majority of large portfolio landlords are maintaining a positive outlook and planning to acquire new assets in the near future.
Investment opportunities
Portfolio Landlords Expanding Property Portfolios
According to the Handelsbanken Professional Landlords Survey, which surveyed prominent UK investors with an average of 29 properties valued at approximately £14 million each, 59% of respondents intend to expand their portfolios in the coming year. Among those seeking to purchase additional properties, 57% are planning to diversify into new sectors.
Confidence in Long Term Value of UK Property
This demonstrates their confidence in the long-term value of UK property as an investment. Only 14% of respondents expect to sell some or all of their properties.
The survey also revealed that 92% of respondents anticipate an increase in the value of their portfolios over the next 12 months, with 39% predicting growth of over 20%. In contrast, only 8% believe their portfolios will remain relatively stable.
Geographically, three-fifths of respondents planning to expand their portfolios also intend to purchase properties in new regions.
Danielle Coe, branch manager of Handelsbanken's Leamington Spa branch, highlighted the regional variation in landlord sentiment. She emphasised the importance of understanding the specific area in which one plans to invest, especially considering the interest in diversifying geographically.
Manchester Predicted to Experience Strongest Property Price & Rental Growth
conclusion
Despite property price growth slowing from the peak pandemic levels, industry experts JLL forecasts that sale prices of Manchester city centre homes will increase by 19.3% over the next five years, while rents will rise by 21.6%, which are the highest predicted across the six markets analysed.
