Further proof that the buy-to-let property investor is confidently expecting his business to grow is provided by one of the leading loan providers in the lettings sector.
Paragon, who only returned to the buy-to-let lending sector 24 months ago have already secured a major foothold in the market. According to their latest survey of landlords many are expecting to take out buy to let property insurance on additional properties as the demand for private accommodation continues to soar. For the first time in the two years the quarterly survey has been carried out landlords have indicated that the total number of homes owned will increase over the coming period.
Landlords expect borrowing to become easier, a fact borne out by the number of buy-to-let products now on sale (over 500) and expect to increase their rental income, with 30% reporting increases in the second quarter of 2011 already. They expect yields to remain the same but are encouraged by the slight increase in house prices reported by the Halifax Bank and Nationwide Building Society in the last few weeks. Because of this they anticipate the value of their properties to increase.
Commenting on the survey, Nigel Terrington the head of Paragon, said “Landlords are still experiencing high levels of tenant demand which is set to rise further in the coming quarters. It is encouraging to see yields remaining at a healthy level, low void periods and general confidence across the sector.”
The prospect of low interest rates over the next two years, predicted by experts examining the latest reports by the Bank of England on how the economy is faring, can only add to the number of landlords confident enough about the future to go out and add even more properties to their portfolios.