Both landlord lender Paragon and property portal Rightmove have released landlord sentiment surveys that confirm more landlords want to expand their portfolios, while others are attracted to invest by the returns offered by the sector.
Paragon reckons 15% of landlords want to buy more property over the coming months, while Rightmove puts the figure much higher – at 74%.
Landlords are looking for terraced homes and flats (47%) as primary investments, although semi-detached houses are also popular (30%) and multilet flats are in demand (20%), says Paragon.
But, the poll also revealed shared house in multiple occupations are losing their shine, with only 10% of investors seeking to buy.
This could result from stricter HMO regulation by many councils in university cities.
Many landlords are planning to spend on home improvements in 2013. Two thirds will improve one or more homes, concentrating on upgrading kitchens and bathrooms (30%) and replacing boilers (26%).
The Paragon research also showed the average landlord portfolio is 12.7 properties, 41% of landlords expect rents and demand to continue at the same rate in to 2013 and average yields are 6.5%.
Rightmove took a different view, taking opinions from tenants as well:
• 53% would like to buy a home but cannot afford the deposit
• 16% prefer renting and do not want to buy
• 37% of tenants expect to rent a home for three years or longer
Rightmove director Miles Shipside said: “In locations where property prices have fallen substantially or rents have risen more dramatically, landlords have invested and many seem willing to invest again. Some higher priced areas remain unattractive to the hard-nosed investor or risk-averse lenders.
“Those areas will continue to see the supply of rental property outstripped by demand putting further upwards pressure on rents. However, overall greater supply of rental property coming on tap is good news for tenants as it is likely to lessen the pace of rental growth in 2013.”
