It seems as though whenever the property market or the private rented sector has been mentioned in the news for the past few years it has all been doom and gloom. This is mostly due to the fall in property prices, the lack of affordable housing throughout the UK, a growing number of people not being able to buy a home and the government urging for stricter rules to be placed on landlords. However, it has now been revealed that for the first time in almost three years private sector landlords are optimistic about the industry.
In a survey conducted by Paragon Mortgages, nearly one third (30%) of private sector landlords said that they felt optimistic about the future of the industry and the prospects for their property portfolios. This is the highest it has ever been since mid-2010, which could indicate that the housing industries in Britain are finally on the up. Discussing the results of the survey, director of mortgages at Paragon Mortgages, John Heron said: “The first quarter of 2013 has been a relatively positive one for landlords. The increasing level of optimism is a good indication of how landlords are feeling about the prospects for the private rented sector.”
“Due to such high levels of tenant demand it is unsurprising that void periods continue to remain low. Whilst we have seen a good start to the year we need to see landlords making further investments in their portfolios to try and meet the growing demand for rental property. The buy-to-let market has made great progress over the last 18 months but it is vital that the momentum continues in the coming months. Driving that momentum will be the smaller private investor landlords, who will find it easier to secure finance.”
“Professional landlords who have traditionally been the backbone of the PRS are finding it hard to secure new finance and with little equity to release they will not be able to make the investment the sector needs.” With the private rented sector becoming more stable landlords should soon find it easier to invest in more properties, secure a mortgage and find cheap landlord insurance. The housing crisis will also be alleviated as there will be more housing available to meet the huge demand, and hopefully the UK economy will also benefit from the improved housing situation.