Landlords optimistic after strong start to 2012
03 April 2012
Written by Jenny Barrett
The majority of UK landlords are optimistic about the private rented sector after a strong start to 2012, a report has found.
Buy to let mortgage specialist Paragon Mortgages has released its private rented sector (PRS) Trends Report for the first quarter of 2012, with positive results.
The majority of landlords were found to be optimistic for the year ahead, with more than 50 per cent of respondents saying they expected tenant demand to continue to increase over the next twelve months.
This expected demand was reflected in landlord’s expectations in the buy to let mortgage market. The survey found that a third of landlords feel that buy to let finance was at least reasonably available, while 63 per cent said there was no change in their views since the last quarter.
The positive outlook on behalf of landlords for the year ahead has been put down to a good start to 2012, with rental yields still healthy.
Despite a slight drop from the average 6.6 per cent in the final quarter of last year, yields were still strong in the first three months of 2012 at 6.2 per cent.
As well as this, void periods were also found to be decreasing. The average void period fell to 2.6 weeks this quarter, compared to 2.9 weeks at the end of last year.
“Despite some reports suggesting tenant demand may be falling, landlords are still experiencing decreasing void periods, so the appetite for quality, private rented housing is still very much there,” said Nigel Terrington, Chief Executive of Paragon Mortgages.
“The findings of the Q1 Trends survey are interesting and show that it has been a positive start to 2012. Landlords are optimistic about the year ahead and are planning to invest in their portfolios.”
The report found that a fifth of landlords are planning to purchase another buy to let property in the second quarter, driven by the strong start to the year.