10%% of landlords are now looking to purchase properties compared to just 3% at the end of last year, according to research by Simply Business, which provides insurance to over 250,000 landlords.
At the end of 2019, 82% of landlords claimed that they had no plans to acquire another property in 2020, while just 3% were intending to add more than a single property to their portfolio.
After the stamp duty holiday was implemented, a tenth of landlords said they are now planning to purchase more properties and build out their portfolio, and just 5% said they had any intention to sell any existing properties.
Simply Business believes this rise in confidence could lead to a spike in investments away from the city, including in the countryside and coastal towns. At the end of last year, 29% of UK residential landlords already believed properties in city centres no longer represented a worthwhile investment. Now with more landlords intending to purchase, Simply Business thinks this may change.
Alan Thomas, UK CEO at Simply Business, said: “The coronavirus outbreak and consequent lockdowns have been transformational in UK renters’ attitudes towards property, and therefore where landlords are looking to make their next investment.
“The pandemic has resulted in people spending more time at home – both for work and leisure, while many of the benefits of city living have been impacted. It’s no surprise to see that renters are valuing larger properties with outdoor space.
“There appears to be a shift in terms of what is considered a desirable property by tenants, and residential landlords – crucial to both the economy and the local communities where they provide housing – along with the market in general, are reacting to this.
“What is clear though, is that the UK buy-to-let market is going through somewhat of a transition, driven by a move away from the previous demand for city centre properties.”