Landlords looking to invest once more
16th April 2010 by: Andrew Jacobs
The number of landlords looking to invest in residential properties will increase this year as research shows renewed interest across the buy-to-let market.
According to Paragon Mortgages’ PRS Trends Report, a quarterly review of the private rented sector, 12% of landlords are planning to purchase property in the second quarter of 2010, rising from 10% at the start of the year.
Terraced housing appears to be the most attractive property for spending landlords, attracting 67% of those intending to invest, while semi-detached housing comes a distant second at 25%.
“Demand for property investment has remained strong during the recession and has improved since house prices stabilised,” commented Paragon Group Chief Executive, Nigel Terrington.
“Landlords know that the long-term forecast for tenant demand is extremely healthy, with socio-economic and demographic changes leading to growth in the number of households calling the private rented sector home.”
Promising figures also show that tenant demand remains strong in the private sector, with 24% of landlords surveyed stating that demand grew during the quarter, compared to just 13% claiming demand was in decline.
“Landlords are in a strong position. They are enjoying unprecedented levels of tenant demand, and structural changes taking place in the UK will create further demand. As the Royal Institution of Chartered Surveyors recently highlighted, this is leading to higher rental income,” added Mr Terrington.
But, while landlords are expecting their portfolios to rise in price over the next quarter, access to mortgage finance is still proving a pivotal issue, as 82% claimed it was more difficult to secure finance compared to earlier in the year.
According to Mr Terrington: “One in seven households now lives in privately rented accommodation and government figures show that the private rented sector is the only housing tenure that is currently growing.
“But supply is being inhibited by a lack of available mortgage finance and there is a danger that households could eventually be priced out of the sector.”
According to Paragon Mortgages’ PRS Trends Report, a quarterly review of the private rented sector, 12% of landlords are planning to purchase property in the second quarter of 2010, rising from 10% at the start of the year.
Terraced housing appears to be the most attractive property for spending landlords, attracting 67% of those intending to invest, while semi-detached housing comes a distant second at 25%.
“Demand for property investment has remained strong during the recession and has improved since house prices stabilised,” commented Paragon Group Chief Executive, Nigel Terrington.
“Landlords know that the long-term forecast for tenant demand is extremely healthy, with socio-economic and demographic changes leading to growth in the number of households calling the private rented sector home.”
Promising figures also show that tenant demand remains strong in the private sector, with 24% of landlords surveyed stating that demand grew during the quarter, compared to just 13% claiming demand was in decline.
“Landlords are in a strong position. They are enjoying unprecedented levels of tenant demand, and structural changes taking place in the UK will create further demand. As the Royal Institution of Chartered Surveyors recently highlighted, this is leading to higher rental income,” added Mr Terrington.
But, while landlords are expecting their portfolios to rise in price over the next quarter, access to mortgage finance is still proving a pivotal issue, as 82% claimed it was more difficult to secure finance compared to earlier in the year.
According to Mr Terrington: “One in seven households now lives in privately rented accommodation and government figures show that the private rented sector is the only housing tenure that is currently growing.
“But supply is being inhibited by a lack of available mortgage finance and there is a danger that households could eventually be priced out of the sector.”
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