Since the credit crunch hit, private landlords are the most confident they have been according to research conducted by Paragon Morgan.
It was commissioned by Paragon Mortgages and executed by BDRC Continental. The research showed that 66 per cent of those that took part in the survey are expecting good things for the next quarter of 2012. This is the greatest percentage since 2007.
The landlords were also required to give their views on the private rented sector for the rest of this quarter and this showed that 57 per cent said they are also expecting good things. This is again reinforcing the fact that landlords are more positive than ever before.
During the last quarter, from the landlords that were asked, 12 per cent of them increased their portfolios. On average they added an extra 2.6 properties and a further 22 per cent are planning to add to their buy-to-let businesses.
As landlords are purchasing more properties this means they are extremely confident in the market as more properties mean more additional costs such and landlord insurance and maintenance costs.
Included in the research were also questions on what landlords felt about rental yields and void periods. Many said that they expect to see an average rental yield of 6.2 per cent in this quarter. According to the report only 34 per cent of the landlords experienced void periods. This is the lowest percentage for the last year.
It was also revealed that those that were most likely to rent a property were young couples, making up 54 per cent of tenants. Those who were young and single are 49 per cent of tenants while families with young children make up 47 per cent of those renting a property.
The managing director of Paragon Mortgages, John Heron has said, “The latest English Housing Survey published earlier this month, shows that they private rented sector now accounts for 3.6 million households in England. This is 17 per cent of the total number of households and practically accounts for the same level as the social rented sector.
“This is a remarkable shift in tenure that – in the context of housing patterns at least – has happened over a very short period of time. It has been made possible by a relatively enlightened approach to landlord and tenant regulation and because buy-to-let finance has allowed landlords to expand their portfolios.
“Our own survey indicates that landlords remain positive about the future of the sector and are looking to expand their portfolios further in order to meet the growing demand from private renters. I am pleased to see that confidence is growing and that it has reached its highest level post-credit crunch.”