35 per cent of landlords want semi-detached properties to expand their portfolios; up from 23 per cent at the end of last year
Paragon Mortgages’ research shows landlords expect steady growth in the sector with 27 per cent positive about the future of their portfolios.
Almost one fifth (18 per cent) plan to buy a new property in coming months, up from 15 per cent in Q4 2014, and 35 per cent are attracted to semi-detached properties.
A further 35 per cent of landlords are interested in terraced homes while multi-block units and Houses in Multiple Occupation (HMOs) have also drawn more interest in Q1 2015.
More than one fifth (22 per cent) of buy to let landlords are interested in these investments while around 30 per cent are considering adding a flat to their portfolio.
The popularity of semi-detached builds represents marked growth from the end of last year while terraced homes have fallen out of favour as Q4 figures show growth in the former from 23 per cent but a reduction from 67 per cent in the latter.
Experience and confidence
Paragon Mortgages’ Private Rented Sector Trends Survey also shows landlords are more experienced with 92 per cent having been invested in the industry for a minimum of ten years.
They also noted high confidence amongst buy to let investors who are enjoying record-low void periods of 2.4 weeks and average loan to value ratios of 38 per cent on their portfolios.
John Heron, Paragon Mortgages’ Director of Mortgages, said these increases point towards “steady growth in the private rented sector”.
He added that landlords were looking at a wide range of property types to expand their portfolios and cater to the diverse needs of tenants.
12th May 2015