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Tenant Demand Stable or Growing, Say Landlords

July 14, 2014 | Landlord News  

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The latest quarterly survey by specialist buy-to-let lender Paragon Mortgages shows that 94% of UK landlords are seeing stable or growing tenant demand. Landlords also reported a slight increase in yields in the second quarter, rising to 6.2% from 6.1%. The average yield has now been hovering around this level for a full year.

Landlord confidence in the private rented sector was also found to be in a healthy condition, with 38% of landlords saying they felt more optimistic about the prospects for their rental portfolios. 56% reported no change in their views from the first quarter, while just 4% said they felt pessimistic about their prospects.

Looking ahead to the next quarter, 16% of landlords said they are planning to add to their rental portfolios.

The types of properties landlords are planning to invest in are basically the same – terraced houses remain the most popular, with 55% of those planning to expand their portfolios targeting this property type. However, detached houses have gained in popularity, with 15% of landlords planning to buy this property type compared to 12% last quarter.

Most landlords (72%) expect the level of rental arrears to remain stable in the next year, while only 11% expect an increase.

Overall, the feedback from landlords in Q2 is positive.

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