The number of landlords who are planning to expand their property portfolio
is at a four-year high, a survey reveals.
The findings from Paragon highlight that 19% of landlords
say they will be investing in property over the next year.
The survey found that those landlords with larger portfolios are the most
likely to buy, with 31% of landlords with 11 to 19 properties saying they
will invest.
For those who manage at least 20 buy to let properties, 28% say they are
looking to buy more.
Landlords planning to expand
This is the first time in four years that a majority of landlords have been
planning to expand, the mortgage lender reveals.
There are also regional disparities between landlords, with 26% of those
questioned in the East Midlands saying they are buying.
In the North East, the figure was 24%, and in Wales it is 28%.
However, just 17% of landlords say they are now looking to sell at least
one of their investment properties over the next 12 months.
Landlords wanting to buy
This sees the number of landlords wanting to buy match the same level seen
in the second quarter of last year – when lockdown restrictions were
unveiled.
Paragon’s managing director, Richard Rowntree, said: “It is fantastic news
that more landlords are looking to buy than sell for the first time in more
than four years.
“This is good for the industry and is good for tenants.”
He added: “More private rented sector investment contributes to higher
standards and more choice and the moderation of rents for those who rely on
the sector for affordable, flexible housing.”
The news has also been welcomed by Simon Thompson, the managing director of Accommodation for Students, who said: “Confidence is
rising among landlords and there are growing numbers of first-time
landlords entering the sector.
“While there is economic uncertainty, it does appear that landlords are
increasingly confident when it comes to investing which is good for
tenants.”
Older tenants head to rural areas
Meanwhile, it has been revealed that older tenants have been heading to
rural areas as part of the pandemic flight from towns and cities.
The findings from the Deposit Protection Service (DPS)
found that older tenants are more likely to move to the countryside – while
younger renters preferred to stay in tows.
The firm’s managing director, Matt Trevett, said: “The lifting of
government restrictions on moving house led to shifts across the renting
democratic as tenants reassessed their needs.
“Older tenants seem to be interested increasingly in rural locations
because of lockdown restrictions causing disruption, including the
permanent or temporary closure of venues and services.”
