It has been reported that landlords are currently the most confident since the economic downturn in 2007. These are the results of research commissioned by Paragon Morgan and carried out by BDRC Continental.
Confidence
The results found that 66 per cent of the landlords that were questioned in the survey are expecting that the rest of the year and especially this quarter are going to be promising months. This is the best result in positivity since 2007 when the credit crunch hit and affected the housing market.
The views that were also expressed in the research were that many were not only confident in their own lets but were confident in the private rented market. 57per cent of those asked showed this confidence and are expecting more from the rest of the year.
Properties
Many landlords in the last quarter have purchased new properties to add to their portfolios. 12 per cent have already done this and another 22 per cent are looking to do the same within the year.
This increase in portfolio size shows real faith in the rental market as there are always additional costs that come with a new buy-to-let, especially landlord insurance.
As part of the research, the landlords were asked what they felt about other areas of the market such as rental yields and void periods. The research showed that only 34 per cent of the landlords have experienced void periods which are the lowest percentage for a year. They are also expecting their rental yield to be on average 6.2 per cent.
The study also uncovered those who are most and least likely to rent a property and how many of these are actually tenants. 54 per cent that are currently renting are young couples where as young singles make up 49 per cent of tenants. Families with young children are also inclined to rent with 47 per cent being current tenants.
Paragon Mortgages
“The latest English Housing Survey published earlier this month, shows that the private rented sector now accounts for 3.6 million households in England. This is 17 per cent of the total number of households and practically accounts for the same level as the social rented sector,” said the managing director of Paragon Mortgages, John Heron.
He added, “This is a remarkable shift in tenure- that in the context of housing patterns at least- has happened over a very short period of time. It has been made possible by a relatively enlightened approach to landlord and tenant regulation and because buy-to-let finance has allowed landlords to expand their portfolios.
“Our own survey indicates that landlords remain positive about the future of the sector and are looking to expand their portfolios further in order to meet the growing demand from private renters. I am pleased to see that confidence is growing and that it has reached its highest levels post-credit crunch.”