Landlords undeterred by new regulation
Landlords will continue to invest in buy-to-let properties despite the introduction of the new Houses of Multiple Occupation rules (HMO), research has revealed.
Research from buy-to-let lender Paragon Mortgages shows that even with the new HMO licensing rules, most landlords expect gross yields to rise from 6.3% to 6.4% in the next 12 months.
Additionally, 24.5% of Landlords reported that tenant demand was rising and 38.5% of landlords said they thought a rise in rents was achievable.
John Heron, managing director of Paragon Mortgages, said: “Landlords are experiencing strong tenant demand, as reliance on rented accommodation continues to grow due to social and demographic trends. More young people see renting as a lifestyle choice, and in addition, there are an increasing number of students and immigrants who tend to opt for rented homes to meet for their accommodation needs.”
“These trends are clearly having an impact on landlords’ future investment plans,” he added.