You are here: Home - News -

Buy-to-let trends on the up

by:
  • 16/12/2002
  • 0
Paragon Mortgages' quarterly survey of buy-to-let trends found confidence levels among landlords ret...

Paragon Mortgages’ quarterly survey of buy-to-let trends found confidence levels among landlords returning to last spring’s levels.

The research highlights an estimated average 21% rise in portfolio size over the next 12 months, with landlords expecting price rises of almost 7%. This will take the size of the average portfolio from around nine to just under 11 properties.

John Heron, managing director of Paragon Mortgages, said: ‘The main driver for confidence is not so much the strength of the housing market, but the signals landlords are receiving regarding tenant demand. There is strength at the top-end of the market from those who find property too expensive at the moment and at the bottom due to lack of supply in the social housing sector.’

The survey showed current average gearing of a buy-to-let portfolio up slightly at 44%, from 43%. Net annual rental returns are averaging 6.3% for professional landlords and 5.6% for amateurs. Reported void periods have dropped from an average of just over 19 days to just under 18 days, with 48% of landlords reporting average voids of less than two weeks.

Heron added: ‘One reads in the press of landlords having problems, but we have not seen that in the reported void periods. This is supported by the Council of Mortgage Lenders’ figures as well, as arrears levels in this market have reduced.’


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Joining the pack

With the Government again committed to introducing Sellers' Packs, Paul Robertson discusses how they could work with Peter Duckworth, sales...

Close