Quantcast
Menu
Save, make, understand money

Buy To Let

UK landlords plan to buy more property in 2013

paulajohn
Written By:
paulajohn
Posted:
Updated:
29/03/2022

Three quarters of landlords are optimistic about the Private Rented Sector (PRS) and 15% plan to expand their portfolios this year.

According to research from specialist buy-to-let lender Paragon Mortgages, 83% of landlords deem rental demand to be the most significant factor affecting their business, 69% say rent levels are a priority and 46% are concerned about tenant arrears.

Overall 41% think tenants demand will increase in 2013 and just 6% believe it will fall.

Of the 15% of landlords planning to buy more buy-to-let property this year, 47% will look to purchase terraced houses, flats and maisonettes; 30% semi-detached and 20% multi-unit blocks. Houses in Multiple Occupation (HMOs) and detached houses and furthest down the shopping list at 13% and 10% respectively.

The landlords surveyed own an average of 12.7 buy-to-let properties, set to rise to 13.2 properties by the end of 2013.

According to the research, 64% plan to carry out improvements to some or all of their properties, with 30% looking to install a new kitchen or bathroom and 26% planning to fit a new steam generator.

John Heron, managing director of Paragon Mortgages, said:

“2012 was a good, steady year for landlords. They continued to invest in their property portfolios, albeit at a slower pace than needed for the PRS to cope with increasing levels of tenant demand.

“Void periods throughout last year remained low as they have done for some time now, and the average yield landlords achieved on their portfolios was healthy. The next 12 months will be very interesting for the PRS and the buy-to-let market, there will be continuing progress and we will hopefully see confidence levels increase even further.”


Share: