While I was browsing the property sphere I came across a very interesting article discussing landlord optimism in the New Year. It seems that studies have been carried out within the private rented sector in order to indicate that landlords are excited about the prospects for next year.
Landlord Survey
The research was carried out by the Royal Institute of Chartered Surveyors (RICS) and Paragon Mortgages and it certainly looks like landlords are expecting to bolster their property portfolios in the coming year. Even this year landlords have been improving their portfolio with the average number of properties per landlord rising to 13 properties in the three months to October 2011.
The survey has revealed that 22% of landlords anticipate adding properties to their portfolio in 2012 whilst just 8% of landlords said they would consider reducing their numbers. Furthermore, the research showed that 77% of landlords were feeling more positive about actually being a landlord, whilst 57% of those landlords thought that next year will be a great time for them.
Increased Supply Needed
John Heron is the Managing Director of Paragon Mortgages, and he has been explaining the following: “This is an interesting time for the private rented sector as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain.”
He added: “Looking at the year ahead, I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012 and to ensure the private rented sector can withstand further demand, there needs to be increasing investment in private rented sector stock.”
Tenant demand is very strong indeed at the moment and so, as demand is so strong, the amount of supply needs to improve and grow. This could then result in higher numbers of landlords as more and more people try their hand at property investment. This will undoubtedly lead to an increasing amount of landlord insurance quotes being applied for, and to be honest, landlord insurance, when managing multiple properties, will be an absolute necessity!
It’s great that landlords are feeling positive for the New Year, hopefully many other industries within the UK will share this optimism as we move into 2012, and hopefully, just maybe, we can begin to move out of the economic recession. Here’s to 2012!