A report by a mortgage provider newly returned to the buy-to-let sector suggests landlords are buoyant about their future prospects.
Paragon, who virtually disappeared from the buy-to-let loan scene about two years ago have recently returned and have released their Paragon Private Rented Sector Trends report. The survey of landlords suggests that on average landlords are probably seeking more landlord insurance as the number of properties in portfolios has crept up.
Landlords also reported a slight increase in yields, up by 0.1% while the only downside to the report was that almost 7 in 10 landlords complained about the poor availability of buy-to-let mortgages.
Overall 20% more landlords were confident about their prospects over the next few months, which is traditionally a good time for landlords as the new influx of students arrive at the UK’s seats of learning. The great majority are expecting good business for at least the next 12 months as they feel the spending cuts will see tenant demand grow. Landlords in London particularly anticipate great demand for their properties as the changes to housing benefits take effect.
Nigel Terrington, the CEO of Paragon, summed up the report thus “Demand for private rented property is buoyant and many landlords have tenants competing for their properties. The third quarter of the year is historically a strong period for rented property but this level of demand has been exacerbated by the low levels of mortgage lending in the owner-occupier market. This continues to translate into demand for rented property as people are unable or unwilling to buy in the current environment. Tenant demand continues to strengthen, yields are healthy and stable and confidence is high. The housing market is presenting some strong buying opportunities and landlords are well placed to take advantage.”