Landlords are looking to extend portfolios
More good news for landlords, as buy to let mortgages are more readily available this leaves opportunity for landlords to expand their property portfolios.
An increasing number of landlords are looking to add more properties to their portfolios.
This is according to new research by Paragon Mortgages, which found a boost in the availability of buy-to-let mortgages is encouraging rental property owners to expand.
In a survey of landlords, the organization revealed the typical portfolio now consists of 14.7 homes compared to 13.3 in the second quarter of this year. This is expected to increase to 14.8 over the next 12 months.
John Heron, director of mortgages at Paragon, commented: “The third quarter survey paints an encouraging picture of growth in the private rented sector, suggesting landlords increasingly have the confidence to invest because of improved access to finance.”
The organization found 37 per cent of landlords now believe buy-to-let funding can be reasonably acquired, compared to 35 per cent in the previous quarter and just 25 per cent at this point in 2012.
Some 91 per cent of the rental property owners surveyed said they think tenant demand is stable or increasing, while the average rental yield reported by landlords still stands at 6.4 per cent.
“Demand for private rented accommodation remains high and it is vital that this emerging confidence in the landlord community is nurtured in order to maintain the growth in supply,” Mr Heron stated.
However, he warned the industry must ensure buy-to-let lending is sustainable and remains affordable to landlords in the long term.
The results of Paragon’s survey are promising and represent good news for the letting sector, with agencies standing to benefit from increased demand for their services as rental property owners add more homes to their portfolios.
This follows positive figures from LSL Property Services, which revealed rents in August were close to reaching all-time-high levels and the government’s promise to add more homes to the private rental sector through its Build to Rent Fund.
If you are a landlord or are looking to invest in property why not give us a call and speak to Adam Rastall for tips and advice on arrears to buy and properties to look out for. 0151 256 0880!
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