Confident landlords plan to buy more homes to letMake Text Bigger
Falling prices and relaxed buy to let finance lending has let landlords swoop to add properties to their portfolios.
The average professional property business portfolio increased to 14.1 during the last three months, according to a poll by landlord lender Paragon Mortgages.
The rate landlords are buying property has also increased – with the average portfolio size taking nine months to move from 12.5 at the end of the second quarter last year to 12.9 at the end of the first quarter this year and just three months to jump to 14.1 homes.
Property investors are also optimistic about the rental market, with more than a fifth (21%) of landlords told the lender that they expect to add more property by the end of September – up from 18% in the second quarter of last year.
Nearly half (49%) of landlords planning to buy will target terraced homes to let. A quarter (26%) are looking for flats or maisonettes, while 23% are seeking semi-detached homes.
Paragon Mortgages managing director John Heron said: “The fact that landlords are planning to make further investments in their property portfolios is positive news.
“It shows their appetite to grow their business to meet the on-going demands from tenants and demonstrates the viability of the UK’s private rented sector.
“The issues around housing supply in the UK are well documented and have been hotly debated over the past few months in particular.
“However, what our research shows is that landlords are investing further in private rental property and they look set to continue to buy over the coming quarters.
“While this will not solve the problems around supply it will make a valuable contribution.”
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