Professional landlords across the UK are looking to purchase landlord insurance policies on even more properties as the current boom in the rental market encourages them to extend their empires.
That is the verdict of a report by Paragon Mortgages a leading provider of buy-to-let loans. The company surveyed landlords already owning properties and found almost 1 in 4 were looking to buy a new property in the near future. The demand for rental accommodation is behind the landlord’s confidence and less than 1 in 10 believes now is the time to cut back on their portfolios.
The survey also revealed what type of property the average landlord looks for and how many properties he owns. The report found that respondents to the questions on average, owned 13 properties, up by 1 on the previous report earlier this year and 65% of the landlords owned at least 1 terraced home in their collection. Terraced homes are by far the most popular type of property for landlords with flats and apartments coming in second and third.
John Heron, Managing Director at Paragon, said “This is an interesting time for the private rental sector as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain. 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 rental sector can withstand further demand, there needs to be increasing investment in stock.”
There are few surprises in the report as landlords in all corners of the UK are experiencing their best ever period in terms of rental achievement, and those with the wherewithal to increase their profits are doing so by buying up cheap property.