According to research from buy-to-let lender Paragon Bank, nearly four in 10 (37%) portfolio landlords intend to expand their portfolios in 2024 through methods like releasing equity or using existing capital. The Portfolio Landlord Report 2024 indicates that the majority of those adding properties are doing so as part of a strategic expansion plan, driven by long-term demand for rental properties, and as part of their retirement strategy.

The survey highlights that most landlords (61%) intend to purchase properties with a mortgage, while 39% plan to buy outright. Additionally, over half (52%) of landlords prefer to invest in terraced homes, followed by semi-detached homes (46%) and individual flats (26%).

Richard Rowntree, Managing Director of Mortgages at Paragon Bank, notes that portfolio landlords are optimistic about the buy-to-let market’s future and are seeking to capitalize on opportunities in 2024. One strategy they employ is remortgaging existing properties to release equity for new purchases, aiming to diversify their portfolios, increase rental income, and secure long-term financial goals.

The report also reveals that portfolio landlords often target properties offering higher yields, such as houses in multiple occupation (HMOs) or those convertible to HMOs. Approximately one-fifth (21%) of portfolio landlords plan to purchase HMOs, while a similar percentage (20%) aim to acquire properties convertible to HMOs. Rowntree emphasizes that while HMOs offer attractive income potential, they also entail more management and compliance requirements, underscoring the need for specialized support tailored to the needs of portfolio landlords.