Tenant demand keeps rising – Paragon
Demand for rental property is stable or growing across the UK.
According to the latest Private Rental Sector Trends research from specialist buy-to-let lender Paragon Mortgages, 91% of landlords said they thought that demand was static or increasing in the three months to September, with just 6% of landlords stating that, in their opinion, demand was declining.
On average, UK landlords said they had 12.5 rental properties and many plan to buy more, with the average holding set to rise to 12.9 properties within a year. Of those surveyed, 16% plan to buy more property to rent out in the next 12 months.
Yields on investment in rental property were robust at an average of 6.2% a year, and landlords think that level will be sustained for the next 12 months.
More than half (68%) of landlords questioned said that their rental income had remained the same during Q3, whilst 27% said that it had increased and 5% had experienced a decrease.
John Heron (pictured), managing director of Paragon Mortgages, said: “It has been a stable quarter for landlords. Yields have remained healthy and at a consistent level for the past 12 months.
“It is not surprising that landlords are continuing to see high levels of tenant demand and I suspect this will continue into Q4 and the coming year. The PRS is under increasing strain with the growing shortage of homes in the UK, housing policy needs to focus more on motivating private landlords to grow their portfolios to better meet demand.”
Article courtesy of Mortgage Solutions