Landlords target urban locations for buy-to-let purchases despite Covid

Paragon’s survey of 846 landlords, conducted by BVA BDRC, found that 16 per cent of landlords plan to buy at least two properties in the next 12 months.

Of those looking to purchase, 68 per cent are looking at buying in urban areas – despite tenants reportedly looking to leave built-up city and town centres.

Around a third plan to buy in a suburban area and six per cent are looking at rural locations.

Two thirds of landlords said they plan to buy in the same area as their existing properties, with one in 10 targeting new areas.

Terraced houses were cited as the property type that half of landlords plan on purchasing.

Semi-detached houses were the next most popular type, followed by flats.

Potential for rental yield was the most important aspect for investors looking for new properties, followed by the potential for adding value which was a key attribute for 59 per cent.

Attributes that have risen in prominence as a result of the Covid-19 pandemic were less of a priority for landlords.

Paragon managing director for mortgages Richard Rowntree said: “This research supports a notion that we have put forward throughout the pandemic; while we need to be able to adapt to changing market conditions, something that the industry has done well, it is also important to look at the bigger picture.

“In doing this, we see that despite significant shocks to the system, the fundamental principles underpinning the private rented sector remain.

“While we have seen some move out of urban areas, this isn’t possible or desirable for everyone. The successful landlords will be the ones who invest with the intention of meeting the diverse demand for good quality, affordable housing.”