The United Kingdom’s (UK) rental market is exploding due to more and more people being unable to finance home purchases and landlords are looking to take advantage by snapping up buy-to-let opportunities. Specifically, flats and terraced houses are most favored among UK landlords because more families are looking to rent in addition to the usual interest from single tenants. The report from Paragon Mortgages also shows that professional landlords are more than three times as likely to invest in more properties in the current market. For more on this continue reading the following article from Property Wire.
Flats and semi detached houses are the most popular current additions to private rental property portfolios in the UK, new research shows.
These types of property are increasing in popularity amongst landlords, rising to their highest level so far this year, according to a survey by specialist buy to let lender Paragon Mortgages.
Of those landlords surveyed in the lender’s quarterly PRS Trends Survey covering the third quarter of 2012 some 16% said they expect to increase the size of their portfolio in the rest of the year.
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Professional landlords are more likely than their smaller scale peers to purchase further rental property, at 20% compared to 6%.
Terraced houses have remained a popular investment option. However, this quarter has seen the popularity of flats and maisonettes, semi detached and detached houses rise to their highest level yet this year.
In terms of the type of properties they intend to buy some 58% are looking at flats, maisonettes or terraced houses while 30% are looking at semi detached houses. Just 21% are set to buy detached houses and 9% bungalows.
‘It is very encouraging to see private landlords looking to invest in a wider variety of property types. This may well be in response to the fact that we are starting to see higher demand for larger rented properties from families who are choosing the private rented sector because they do not want to, or cannot buy in today’s difficult economic environment,’ said John Heron, managing director of Paragon Mortgages.
‘This responsiveness of the PRS to changes in the shape of housing demand is one of the major strengths of the sector and it would be good to see policy makers work with private landlords to make more of this capability,’ he added.
This article was republished with permission from Property Wire.