According to a new study, more than half of UK landlords plan to buy more property in the coming year. Their optimistic outlook has been fuelled by growing demand for rental property and improving tenant finances, shown by the fall in rent arrears over the last 12 months.
The survey found that half of landlords achieved yields of between 6% and 8% this year. One in ten managed to achieve yield in excess of 8%, while 40% achieved yields of 4%.
Although property prices are experiencing steady growth, increasing by 8.2% from November 2013 to November 2014, the survey showed that only a quarter of landlords were planning to capitalise by selling one or more of their properties, such is the strength of tenant demand.
This is backed up by the latest landlord research by Paragon Mortgages, which found that 41% of landlords described tenant demand as either growing or booming. Only 3% said it was declining.
The study found that the past quarter was a steady one for landlords, and that 61% of landlords expect tenant arrears to remain stable in the new year. With private rented sector trends looking positive, 2015 is shaping up to be a good year for landlords.