Paragon’s quarterly Trends survey reveals that a combination of high tenant demand, rising rents and cooling property prices means that landlords are optimistic about their current situation, and have high expectations of their prospects for the next twelve months. Many landlords see an opportunity to pick up property at bargain prices in this environment.
Twice as many landlords are looking to add properties to their portfolio than intend to sell property. According to Trends, 14% of landlords intend to purchase properties in the current market, with 71.4% of those that are looking to buy stating that an ability to secure lower prices on properties will spur them to grow their portfolio over the next twelve months.
However, the majority of landlords said they intended to take no action in the current market, with 67% claiming they were not looking to either buy or sell property, highlighting the stability the private rented sector is providing the housing market with at present.
John Heron, managing director of Paragon Mortgages, commented: “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.”
