Landlord confidence strong
- 27th August 2008
- Landlord Property News
Recent research has shown that confidence in the buy-to-let market is strong with landlords remaining optimistic about their situation.
The quarterly trends survey just released by Paragon Mortgages has shown that there are a number of factors supporting landlord confidence. These include: high tenant demand, rising rents and an uncertain sales market.
The survey found that twice as many landlords are looking to increase their portfolio than intend to sell, with 71.4% looking to buy over the next 12 months if the ability to secure lower prices remains.
39% say that increased tenant demand would also make them consider buying more properties, while 25% said that rising rental income would be the deciding factor in any purchase.
John Heron, managing director of Paragon, says: "Tenant demand is very high, rents are rising and buying opportunities are presenting themselves in a cooling housing market. Professional landlords are using current market conditions to get ahead. With an average portfolio gearing of just 36%, they are well placed to free up equity to expand their portfolios and this is action we are seeing landlords take."
He continued: "Now is a good time for landlords to tweak their portfolios and dispose of properties than aren't performing as they would have hoped, while picking up property at cheap prices to bolster their portfolios."
Buying opportunities are presenting themselves.
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