10:56 AM, 7th September 2011, About 12 years ago
Landlords are becoming more family orientated and buying bigger homes to rent, according to a buy to let mortgage lender.
Paragon Mortgages research highlights that landlords buying investment property this quarter are keener on larger homes.
Around four out of 10 are looking to invest in semi-detached houses and a fifth are looking to buy a detached home.
The previous quarter showed 28 per cent of landlords wanted to buy semi-detached property and just nine per cent showed an interest in detached houses.
The study discloses that although most people believe renters are singles or young couples, an increasing number of families are renting and their number looks set to rise.
Tough mortgage restrictions and worries about debt are blamed for encouraging more families to let rather than buy.
Around half of landlords (45 per cent) have families as tenants, making them the fourth largest tenant type. The most popular tenant type is young couples (55%), with 52% letting to professionals and 50% to young singles.
Nigel Terrington, Paragon’s chief executive, said: “It is interesting to see more families relying on the PRS, and this is certainly a trend which I expect to stay.
“Young couples and single person households will continue to account for a large proportion of the PRS, but I think over the next few years we will see more families making use of the flexibility and affordable accommodation that the PRS provides.
“With a rising UK population, which is set to grow from 62.3 million today to 65 million in 2016, landlords need to react quickly to a changing tenant demographic as otherwise demand will most certainly exceed supply quite considerably.”
Traditionally, terraced house have been the property of choice for buy to let landlords. Large numbers of new build flats were also bought in the years leading up to the 2007 house price crash.