British landlords enjoying strong demand in Q3

 
British landlords enjoying strong demand in Q3

Landlords across the UK are still enjoying favourable conditions, according to the latest reports published Paragon Mortgages, which states that demand has remained high from tenants in the third quarter of the year. 

Throughout late summer and into the autumn period, house sales often pick up, so there may have been some concern among landlords that their own investment would stall somewhat during the third quarter. 

But Paragon's Private Rented Sector Trends survey showed that only three per cent of all landlords in the UK believe demand for their properties from tenants fell during the last three months. 

Some 41 per cent of British buy-to-let owners said that in their opinion the level of demand in the market is actually rising, while 51 per cent added that they believe it has reached a stable level. 

"Our latest survey of landlords reveals that that the past quarter has been a stable and steady one, with just over a third of landlords saying they feel more optimistic about the prospects for their rental portfolios," said John Heron, the firm’s director of mortgages.

Further confidence will come from the fact that more and more landlords now expect the situation with rental arrears to stabilise moving forward. Just 12 per cent expect the arrears they are owed to increase, while eight per cent think they will decrease and 61 per cent are predicting that they will stabilise. 

As well as this, the report predicted that mortgage lending for the purposes of purchasing buy-to-let properties should greatly exceed 2013 levels this year. Just 12 months ago, the Council of Mortgage lenders reported, this type of lending exceeded £20 billion. 
"Current thinking is that gross buy to let lending this year will be around the £25 billion mark, which represents a healthy increase over 2013 but there has been some evidence that the rate of growth has slowed as the year has progressed," said Mr Heron.