Property News

Landlords expect more growth for portfolios - 12/05/2006

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British landlords expect rises to their rental yields and their portfolios over the next years, according to research published today.

New figures state that almost a quarter believe that tenant demand is rising, with tow-thirds claiming that it is stable.

This has led to an increase in rents with almost 40 per cent saying they have seen achievable rents in the past few months.

John Heron, managing director of Paragon Mortgages who provided the research, commented on the increased confidence among British landlords.

He said: "Landlords are experiencing strong tenant demand, as reliance on rented accommodation continues to grow due to social and demographic trends.

"More young people see renting as a lifestyle choice, and in addition, there are an increasing number of students and immigrants who tend to opt for rented homes to meet for their accommodation needs."

He added that the sustained demand has led to landlords expecting a higher level of growth for their portfolios at this time than at almost any other point in the last 12 months.

Recent research from Bradford & Bingley provided similarly optimistic findings for those in the buy-to-let sector.

Its data found there was a surge in demand for rental opportunities in the first quarter of 2006, leading to 85 per cent of landlords commenting that rent is either the same or higher than it was a year ago.

© Adfero

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