Paragon Group on the 26th April released their Private Rental Sector Trends Report which revealed positively for landlords that almost half are reporting improved rental demand. Balancing that only 5% of landlords reported that demand was falling, one of the most positive states the buy to let market has held for a long time.Paragon are a specialist buy to let lender who also offer HMO Mortgages and Limited Company Mortgages which are currently only offered by a small number of lenders. They produce a detailed analysis of market conditions for landlords and buy to let lenders on a quarterly basis and the proportion of landlords reporting increasing levels of demand has now risen for seven quarters in a row.
Landlords are experiencing high levels of tenant demand, and this is expected to rise due to a number of factors, including social housing reforms, lifestyle choices, low numbers of first-time buyers and wider demographic changes.Nigel Terrington, Paragon Chief Executive
The report did reveal that a number of landlords continue to find that mortgages for buy to let properties remain difficult to obtain in some cases. With rental yields improving to a solid 6.2% – the highest since Q4 2009 – many lenders are returning to the market and putting out some strong products so this is something we at ProBuytoLet feel will improve over the coming 12 months significantly.
On top of the increasing rental yield landlords also reported that for the third quarter in a row rental voids fell and now stand at an average of just 2.8 weeks in the year. These improving conditions have naturally fed into the landlord confidence measures.
Paragon Provide the Following Link for Landlords Wishing to Read the Entire Report.