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Category: Buy To Let Date: 11/29/2011
While the traditional mortgage market has been tipped to suffer subdued demand over the next year, research conducted by Paragon Mortgages has found that many landlords will look to increase their holdings in bricks and mortar in 2012.
More and more people are looking to the sector to provide them with housing as buying a home is out of reach due to high deposits and constrained mortgage lending.
And more than a fifth of landlords said they will be looking to take advantage of the situation by purchasing additional properties in the next 12 months.
In fact, less than one in ten landlords said they will be looking to cut the size of their buy-to-let portfolios in the next year.
An increase in the number of buy-to-let mortgages over recent months has seen the average number of properties held by landlords rise from 12 to 13, with the number set to climb higher next year
When asked about their current portfolios, the most popular property type that landlords' owned were terraced houses, with 65% of landlords owning at least one.
This was followed by 58% of landlords owning a flat, 48% a semi-detached house and 24% a House of Multiple Occupancy.
The research also highlighted that landlords are more positive about being a landlord, with 77% agreeing to this statement and 57% rating the prospects for the private rental sector in the next 12 months as very good or good.
"This is an interesting time for the private rented sector as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain," John Heron, Paragon Mortgages managing director, said.
"Looking at the year ahead, I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012 and to ensure the private rented sector can withstand further demand, there needs to be increasing investment in rented stock."
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