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News: Good news - Buy To Let tide turns for first time in four years

Thu, 29 Apr 21

For the first time in four years, the proportion of landlords who say they plan to expand their portfolios is higher than those who say they intend to reduce.

Researchers for specialist BTL lender Paragon consulted almost 900 landlords; when asked about their portfolio intentions over the next 12 months, 19 per cent of landlords intend to invest in property.

Landlords already managing larger portfolios are most likely to purchase with 31 per cent of those with 11 to 19 properties and 28 per cent of those who manage 20 or more, intending on expanding.

Differences in planned purchase activity also exist regionally. Above average proportions of landlords operating in the East Midlands and North East indicated that they will invest in the future, at 26 and 24 per cent respectively. 

Despite being the area with the highest proportion of landlords reporting high tenant demand, Wales is most likely to see private rented sector property sold after 28 per cent of surveyed landlords revealed that they plan to divest in the next 12 months.

Just 17 per cent of landlords intend on selling at least one of their properties over the course of the next year. This is drop from the previous two quarters and marks a return to the same level seen in quarter two 2020, the time when lockdown restrictions were announced in the UK.

  

 

Richard Rowntree, managing director for mortgages at Paragon says: “News that for the first time in over four years more landlords are intending on buying than selling is fantastic. This is because not only is it good for the industry but, more importantly, it’s good for tenants. More investment in the private rented sector contributes to higher standards, a moderation of rents and more choice for the millions who rely on the private rented sector for flexible, affordable housing.

“During the uncertainty of the past year or so, the role of the private rental sector has become increasingly important, evidenced by the extremely high levels of demand we have seen for some time now, it’s great to see landlords are responding to this.”

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