A report out today shows that 20% of landlords in the UK purchased property insurance on new additions to their portfolios in 2011.
The Young Index Report focuses on properties in the Private Rented Sector (PRS) and collects data from landlords throughout the UK. The landlords who added to their existing properties last year equally cited rental income increase and capital growth as the two main reasons for their expansion, and the report in general reflects the buoyancy of the rental sector at the moment, with landlords from every area expecting to do even better in 2012.
It is the capital though where the sector is experiencing its biggest growth. Four out of five landlords in London expect their rental income to increase in 2012 and astonishingly every landlord in London questioned expects the value of their properties to increase in the coming year. Half of the London landlords expected to add to their portfolios in the next 12 months. The figures for the whole country were surprisingly positive with 79% believing their portfolios would increase in value although only 1 in 6 landlords outside of London anticipated adding to their home ownership in 2012. In fact the only negativity emanating from the report came from landlords worried about the lack of lending opportunities to fulfil their ambitions.
Neil Young, the chief executive of the company who produced the report, said “Without a doubt, the appetite from private investors in the PRS for additional investments is extremely strong. The London rental market is particularly strong and demand from tenants seeking quality PRS accommodation shows no sign of abating, buoyed by a population that is spending longer than ever living in rented homes and increasingly living in solo households.”