• Landlords based in the East and West Midlands most likely to acquire new property in 2020
• Professional, portfolio landlords show the greatest propensity to purchase
• Terraced houses, semi-detached and flats prove popular amongst landlords

Landlords across the Midlands are most likely to add to their property portfolios over the next 12 months, according to research undertaken for Paragon.

A quarterly survey of nearly 800 landlords conducted by BVA BDRC found that nearly one in four landlords in the East Midlands (24%) plan to purchase in the next 12 months, with 22% of West Midlands landlords also looking to buy.

Other regions that showed a high propensity to buy included the North East and Yorkshire & Humber, with 19% of landlords in both regions looking to purchase.

Landlords in the South West (8%) and Central London (9%) were the least likely to buy over the period. Overall, 14% of landlords plan to purchase property, with the average landlord acquiring three new properties.

Over half (52%) of those looking to purchase are targeting terraced housing, followed by semi-detached property (32%) and flats (26%). One in four landlords also intends to purchase a House in Multiple Occupation during the year, reflecting the growing popularity of this property type, particularly amongst professional, portfolio landlords.

% of landlords planning to increase portfolio in next 12 months

Those with larger portfolios also expressed a greater propensity to buy. The research showed that 8% of landlords with one property said they would purchase during the year, rising to 20% for those with 20 or more.

Meanwhile, 12% of landlords with between 2-3 properties said they will buy, whilst the proportion of landlords with between 4-5 (15%), 6-10 (14%) and 11-19 (14%) properties looking to purchase was broadly balanced.

Richard Rowntree, Paragon Managing Director of Mortgages, said:
"The proportion of landlords looking to purchase new property has been largely consistent over the past two years, but we are seeing regional variations and also a greater propensity for portfolio landlords to invest in property."

We are seeing regional variations and also a greater propensity for portfolio landlords to invest in property

"Portfolio landlords have adopted a number of strategies to adapt to the tax and regulatory changes of recent years and we're seeing trends such as these landlords buying stock from smaller-scale participants as they exit the market, or targeting higher yielding properties, such as HMOs"

The researched showed that nearly two thirds (63%) of landlords plan to fund their next purchase with a buy-to-let mortgage, whilst 17% will release equity from existing properties to generate purchase funds. Meanwhile, 18% said they would purchase property outright using previously invested funds.