You are here: Home - Uncategorized -

Immigrants power buy-to-let sector

Written by:

An influx of people from overseas is creating a thriving buy-to-let sector, as Sam Cutbush discovers

Almost half of all landlords expect rental demand from immigrants will increase over the next few years, according to Paragon Mortgages’ latest Buy-to-Let Trends survey.

Respondents have a current average of 3.5 non-British tenants. Professional landlords have the greatest involvement with non-British tenants, with an average of 4.4. This is in comparison to the small-scale landlord who has an average of 0.5 non-British tenants.

Landlords have seen rental demands from immigrants steadily increase over the past five years. Professional landlords in particular have seen a rise in demand from immigrants, with 40% reporting an increase, compared with 27% of small-scale landlords.

John Heron, managing director of Paragon Mortgages, said: “On the whole landlords are optimistic tenant demand will continue to rise over the next few years, and inward migration is a key contributory factor. Over the past decade migration into the UK has increased from 314,000 in 1994 to 582,000 in 2004, and with further EU enlargement on the agenda, it is likely to increase even further.”

Landlords see migrant tenants as typically representing a stable, long-term customer base. One in three migrants plan to stay for between one and three years, with 15% planning to stay permanently. Only one in eight migrants is expected to stay for less than a year.

John Heron continues: “Individuals coming to the UK represent an increasingly reliable source of rental income for landlords and an important element in future rental demand.”

In terms of future changes in rental demand, 47% of respondents said they expect to see demand from immigrants increasing over the next few years, with 23% of professional landlords expecting to see a significant increase in demand.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
You can be sure of Shell

Royal Dutch Shell reported a record annual profit in 2005 for a UK-listed company, generating a surplus of £12.93bn, up...