Greater than half {of professional} landlords plan to increase their property portfolios within the yr forward, analysis suggests.
It comes amid considerations of a home value hunch and the impression of upper mortgage prices and rising rates of interest on the property market.
Regardless of these points, the most recent Handelsbanken skilled landlords survey – based mostly on nationwide analysis amongst massive UK buyers with a median of 29 properties price £14m every – discovered that 59 per cent plan to increase their portfolios within the yr forward.
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The financial institution stated this reveals confidence within the long-term worth of UK property as an asset class.
Simply 14 per cent anticipate to promote some or all their properties.
Geographically, three-fifths of respondents increasing their portfolio are additionally planning to purchase in new areas.
London was cited as probably the most enticing area over the subsequent 12 months, adopted by the south east.
Areas seen as much less enticing for property funding are Yorkshire and the Humber and the West Midlands.
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The analysis discovered that half of these seeking to purchase extra properties additionally plan to diversify into new sectors, with workplaces attracting probably the most curiosity as buyers look to benefit from depressed valuations.
The vast majority of respondents anticipate the worth of their portfolio to extend over the subsequent 12 months, with 39 per cent predicting it would develop by greater than 20 per cent.
Solely eight per cent thought it would broadly keep the identical.
“The bottoming out of economic property costs within the first quarter of 2023 corresponds with fairly constructive sentiment expressed in direction of the sector on this survey,” stated James Sproule, UK chief economist at Handelsbanken.
“Business property values noticed a significant correction within the second half of 2022 as a direct impression of the upper rate of interest atmosphere.
“As well as, there are the continuing concerns round submit pandemic working practices and retailing habits which, till they’re extra settled, might be weighing on industrial property valuations.”
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