15:55 PM, 12th October 2011, About 12 years ago
Tenants are still clamouring for buy to let homes, according to the latest survey of landlords.
Many landlords (44%) reckon tenant demand has increased in the three months ending September 30th, says Paragon Mortgages, the firm instructing the research.
Only 4% feel demand decreased.
Almost half of landlords (49%) feel tenant demand will carry on rising over the next 12 months.
Rents also continued their upward trend for the third consecutive quarter with a third (34%) of landlords reporting an increase, while only 4% confirmed rents fell.
Buy to let property yields remained steady – with a moderate 0.1% decrease to 6.1% over the quarter.
Average void periods – the time a property stands empty between rentals – also remained steady at 2.8 weeks.
Nigel Terrington, the mortgage firm’s chief executive, said: “Tenant demand has continued to increase for a third quarter, which is perhaps not surprising considering the current squeeze on the UK housing market as a whole.
“More people than ever before are relying on the private rented sector so it is positive to see that landlords are looking to invest in their portfolios and are also diversifying the types of property in which they are investing to meet tenant demand.”
One in four landlords (27 %) consider buy-to-let mortgages are either reasonably or widely available. The rest felt finance was not so accessible.
Meanwhile, a separate buy to let mortgage survey from broker Mortgages for Business revealed the number of mortgage products for landlords is soaring.
The number of buy to let mortgages and remortgages was 508 for the quarter ending September 30th, compared to 403 for the previous quarter.
Managing director David Whittaker said: “This is the third straight quarter in which the number of buy-to-let deals has risen in response to overwhelming demand from professional investors.
“With the base rate set to remain low for the medium term, property prices falling and demand from tenants showing no signs of dropping, investors will continue to capitalise on the healthy returns available from the buy-to-let market.”
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